- XRP is attracting capital as a less crowded alternative to Bitcoin.
- Institutional inflows and utility-driven adoption are reshaping sentiment.
- Technical structure suggests the uptrend remains intact.
XRP has quietly become one of the standout crypto performers of the year, beating both Bitcoin and Ethereum on returns and reclaiming its spot as the third-largest cryptocurrency by market capitalization. After rising more than 20% since the start of the year and briefly touching the $2.40 area, XRP’s rally appears driven less by hype and more by a meaningful change in how investors view the asset.
What’s notable is not just the price move, but why it’s happening now.
A “Less Crowded Trade” Draws Capital In
Market observers point out that XRP benefited from a broader rotation in late 2025. As Bitcoin matured into a more stable and heavily owned asset, traders began searching for alternatives with greater upside potential. XRP emerged as a favored option, often treated as a dip-buying opportunity rather than a short-term momentum play.
That dynamic showed up clearly in early January, when buying pressure increased while selling remained muted. Institutional demand added another layer of support. Since launch, XRP exchange-traded products have attracted roughly $1.62 billion in inflows, signaling steady confidence from larger investors during a relatively calm market phase.
Ripple Stays Private Despite XRP’s Momentum
XRP’s strong performance has reignited discussion around Ripple itself, but the company has firmly shut down speculation about an IPO. Ripple president Monica Long recently reiterated that the firm plans to remain private, citing a solid balance sheet and a preference for growth through acquisitions and product development.
Ripple raised $500 million in late 2025 at a reported $40 billion valuation, giving it ample capital without the pressure of public markets. The decision suggests the company is focused on long-term execution rather than short-term headlines.
Technical Structure Points to a Healthy Trend
From a chart perspective, XRP continues to hold above a rising support line despite pulling back from recent highs near $2.41. A brief dip toward $2.25 was quickly absorbed by buyers, reinforcing the idea that demand is stepping in earlier with each retracement.
Since early January, the token has printed higher lows, a classic sign of an intact uptrend. As long as XRP holds above the $2.20 zone, the broader structure remains constructive, leaving room for a potential push toward the $2.60–$3 range if momentum rebuilds. Meanwhile, the RSI cooling to the mid-40s suggests a reset rather than a breakdown.
Beyond price action, sentiment around XRP appears to be evolving. Analysts and community voices increasingly argue that earlier skepticism is fading as real-world use cases become more visible. Ripple’s expanding partnerships in Japan, including work with major financial institutions on tokenized securities and real-world assets, underscore that shift.
These developments frame XRP less as a speculative bet and more as financial infrastructure built for regulated environments.
Also Read: XRP Set to Skyrocket? Standard Chartered Predicts $8 by 2026
With consistent ETF inflows, improving sentiment, and growing institutional engagement, XRP has a credible path toward higher levels later this year. While volatility is inevitable, the recent pullback looks more like a pause within an uptrend than a reversal. If fundamentals continue to align with market structure, the $5 discussion may move from speculation to possibility.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. CoinBrief.io is not responsible for any financial losses.
