XRP’s buying pressure on the up after 31% weekly rally – What next?

ambcryptoPublished on 2026-01-06Last updated on 2026-01-06

Abstract

XRP has surged 31% in a week, reaching $2.39 and outperforming Bitcoin and Ethereum. It now ranks as the fourth-largest cryptocurrency by market cap. The rally is supported by an 8-year low in exchange reserves, a 57% drop since October 2025, and significant spot ETF inflows, including a $46.10 million net inflow on January 5. Key drivers include Franklin and Bitwise ETFs. Despite overbought RSI levels, bullish momentum remains strong with no immediate pullback expected. However, Bitcoin's weakness could negatively impact XRP's trend. Overall, strong buying pressure and reduced supply suggest continued bullish performance.

Ripple [XRP] was trading at $2.39, at the time of writing. The altcoin has rallied by 31% since the start of the new year, especially as Bitcoin [BTC] challenged the $94.5k-resistance level. In fact, XRP has outperformed both Bitcoin [BTC] and Ethereum [ETH] in recent days.

It even managed to surpass Binance Coin [BNB] in terms of market capitalization, earning itself the fourth spot on CoinMarketCap’s list of the largest crypto assets.

AMBCrypto previously reported that the exchange reserves of XRP hit an 8-year low, with a 57% decline compared to October 2025. The compressed volatility of XRP towards the end of 2025, combined with aggressive outflows, has set up the current explosive rally.

The report also highlighted the importance of spot demand and broader crypto risk appetite required to sustain the ongoing rally. Outflows from exchanges do not guarantee a supply shock.

In particular, any weakness in Bitcoin could send ripples across the market and negatively affect XRP’s momentum.

XRP buying pressure on the rise

On 05 January, XRP Spot ETF flows saw a $46.10 million daily total net inflow. The top inflows were from XRPZ (Franklin) and XRP (Bitwise), measuring $21.76 million and $17.27 million, respectively.

December saw steady inflows to the Spot ETF despite the fear and uncertainty in the wider market. This might be a hopeful sign that the recent change in sentiment would see XRP as one of the top performers.

In the last 24 hours, XRP climbed up by 11.2%, making it the second-best performing asset among the top-20 cryptos on CoinMarketCap. It had a market cap of $144 billion at press time.

The 1-day structure was flipped bullishly with a move above the local swing high at $1.96. XRP bulls had the strength to reclaim the $2.28-resistance as well. Though the RSI was in overbought territory, a sizeable pullback below $2.28 did not seem imminent.

Finally, the A/D indicator highlighted the hike in buying pressure on XRP since the start of the year, in agreement with the ETF flows and the exchange reserves drop. Overall, XRP can be expected to remain strongly bullish in the coming weeks.


Final Thoughts

  • Hike in buying pressure on XRP evident from the Spot ETF inflows and the technical volume indicators.
  • Vastly reduced exchange reserves do not imply an immediate supply shock, but constrained supply does lead to sustained price rallies.

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Related Questions

QWhat was the percentage increase in XRP's value during the recent weekly rally mentioned in the article?

AXRP rallied by 31% during the weekly rally.

QWhat key factor, combined with aggressive outflows, set up the current explosive rally for XRP?

AThe compressed volatility of XRP towards the end of 2025, combined with aggressive outflows, set up the current explosive rally.

QAccording to the article, what is the significance of the outflows from exchanges for XRP?

AOutflows from exchanges do not guarantee a supply shock; sustained rallies also depend on spot demand and broader crypto risk appetite.

QWhich two XRP Spot ETFs had the highest daily net inflows on January 5th, and what were their amounts?

AOn January 5th, the top inflows were from XRPZ (Franklin) with $21.76 million and XRP (Bitwise) with $17.27 million.

QWhat technical indicator, besides ETF flows and exchange reserves, highlighted the increase in buying pressure for XRP?

AThe A/D (Accumulation/Distribution) indicator highlighted the hike in buying pressure on XRP since the start of the year.

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