- XRP exits a long corrective phase with bullish RSI and Fibonacci support.
- Record spot XRP ETF inflows highlight growing institutional demand.
- Tight exchange supply and key resistance levels set the stage for a potential breakout.
XRP has started 2026 on a bullish note, climbing nearly 30% in just six days and trading around $2.40 after a 13% surge today. The fourth-largest cryptocurrency by market cap is drawing attention not only from retail investors but also from institutional players. Analysts and traders are now watching closely, as technical charts and market dynamics suggest the potential for further gains.
Technical Setup Signals End of Corrective Phase
Crypto analyst Dark Defender (@DefendDark) recently shared a 3-day XRP chart that highlights a completed corrective cycle and an early momentum reversal. The chart maps a three-wave corrective structure—labeled A, B, and C—showing the asset bottoming between $1.88 and $2. This area aligns with the 161.8% Fibonacci extension, signaling potential support.
According to the analysis, XRP is exiting this extended consolidation phase. A macro Elliott Wave pattern indicates the asset may now be entering its final wave, with a projected target of $5.85 (Fib. 261.8%). Dark Defender also highlighted a bullish RSI golden cross on the 3-day chart, showing momentum building from lower levels rather than overextended highs—a classic early-stage strength signal.
Institutional Demand and ETF Inflows Drive Gains
Another key factor behind XRP’s rally is strong institutional demand. On January 6, 2026, spot XRP ETFs recorded around $46 million in net inflows, marking their largest single-day inflow since launch. Leading funds like Franklin Templeton, Bitwise, and Canary Capital contributed heavily. ETF inflows since November 2025 have now surpassed $1.23 billion, with no outflow days reported.
The surge in ETF activity coincides with broader market optimism, partially fueled by geopolitical developments. Despite global tensions, investors are seeking risk assets, and XRP has emerged as a leading beneficiary.
Supply Dynamics and Key Price Levels
XRP balances on exchanges have dropped dramatically over the past 90 days, according to Glassnode, from roughly 3.95 billion XRP to 1.6 billion XRP—the lowest in eight years. This supply reduction creates upward pressure when demand rises, making rallies more sustainable.
Also Read: XRP Breaks Out: 3 Signals Pointing to a Bigger 2026 Rally
Technically, XRP faces key resistance at $2.68, with a daily close above that level likely opening the door to the $3.40 range. Support remains strong between $1.90 and $2.10, offering a floor for potential pullbacks. Analysts note that XRP often leads altcoin rallies, suggesting broader capital rotation from Bitcoin into altcoins may be underway.
With a completed corrective structure, momentum building on RSI, record ETF inflows, and a tightening supply on exchanges, XRP is showing a rare alignment of technical and fundamental factors. While short-term volatility remains possible, the setup points to potential upside, and traders will be watching $2.68 closely as a breakout level toward $3.40 and beyond.
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.
