XRP’s Core Fundamentals Signal Underlying Resilience

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While XRP's price appears stagnant, trading narrowly between $1.90 and $1.96, a deeper examination of on-chain metrics reveals a contrasting narrative of fundamental strength. Despite prevailing uncertainty across the broader cryptocurrency sector, key indicators point toward increasing adoption and the potential for a supply squeeze.

The resolution of the SEC litigation in 2025 reopened access to XRP for U.S. institutional investors. This shift is clearly reflected in the performance of spot XRP ETFs, which launched in November 2025. These funds have already attracted inflows exceeding $1.23 billion, building a total asset base of approximately $1.39 billion.

Ripple continues to execute its strategic expansion. The recent listing of its proprietary stablecoin, RLUSD, on the Binance exchange has significantly broadened its reach. Company representatives expressed optimism for 2026 at the World Economic Forum in Davos, citing clearer U.S. regulatory frameworks as a key catalyst for future institutional demand.

Network Metrics Hit Multi-Month Highs

Underlying network activity tells a compelling story. Daily transaction volumes climbed to a six-month peak of 1.45 million in January 2026, signaling growing utilization of the XRP ledger for cross-border settlements. Perhaps more notably, the quantity of tokens held on exchanges has plummeted to 1.6 billion—the lowest level recorded since 2018. This migration of assets into private custody is widely interpreted as a hallmark of long-term holder conviction.

Data from CryptoQuant further reveals a tight correlation between XRP's price movements and trading activity, suggesting structurally sound market development. However, the cumulative volume delta remains negative, indicating that selling pressure is still present. Long-term holders show little movement, with balances in established wallets holding steady.

Cautious Sentiment Masks Diverging Views

Current market psychology, as measured by the Fear & Greed Index, sits at a low 24, reflecting a state of "Extreme Fear" throughout crypto markets. This caution is evident in derivatives markets, where negative funding rates for XRP point to a prevalence of short positions.

In stark contrast, institutional investors demonstrate greater confidence through consistent ETF inflows. This creates a defining market characteristic: a clear divergence between robust fundamental indicators and subdued short-term sentiment.

From a technical perspective, immediate support levels are identified at $1.90, $1.85, and $1.77. Resistance is expected near the psychologically significant $2.00 threshold, followed by levels at $2.10 and $2.18.

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