Key insights:
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XRP's technical setup is popping bullish, with breakout patterns signaling a continuation of the trend.
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Institutional demand is absorbing supply as ETF inflows and falling FX holdings tighten liquidity.
XRP (XRP) began 2026 on a robust footing, gaining about 18.5% in the primary five days to succeed in over $2.16.
The gains reflected bullish moves within the crypto market as the online valuation of all cryptocurrencies, led by top coins Bitcoin (BTC) and Ether (ETH), increased by 7.30% year-to-date.
XRP/USDT day by day chart. Source: TradingView
Given improving fundamentals and technical strength, listed below are three bullish XRP signals that could lead on to further price increases in the approaching months.
XRP is breaking out of the falling wedge
XRP's day by day chart shows a falling wedge breakout, a bullish reversal pattern that typically forms during correction phases inside broader uptrends.
XRP/USDT day by day chart. Source: TradingView
The structure developed over several months as prices made lower highs and lows inside a narrowing channel, indicating a weakening of bearish momentum.
In early January, XRP broke the upper trend line of the wedge at $2.05-$2.10, accompanied by an improvement in relative strength.
Price is now attempting to reclaim key moving averages including the 20-day and 50-day EMAs, while the 200-day EMA near $2.35 stays the subsequent technical hurdle.
If the breakout is confirmed, it opens the door for a move towards the $2.60-$2.70 resistance zone by February, representing a 25% increase from current prices.
The XRP Wyckoff reaccumulation model points to $7
According to a chart highlighted by analyst Charting Guy, XRP's recent rise has occurred inside its dominant Wyckoff reaccumulation pattern.
Reaccumulation is a mid-trend pause that typically occurs after an initial rebound, allowing large players to soak up supply before the subsequent uptrend.
XRP/USD day by day chart. Source: TradingView/Charting Guy
XRP began to stabilize in late 2024 after reaching a base near $1.20, marking phases A and B of the pattern. Price then spent most of 2025 consolidating below resistance around $1.90 to $2.00, indicating a slowdown reasonably than an overall trend reversal.
In late 2025, XRP briefly fell below $1.70, a classic Wyckoff “jump down,” before quickly regaining lost ground, signaling seller exhaustion.
As of early 2026, XRP is attempting to interrupt the descending “Creek” resistance at $2.10-$2.15. A decisive breakout would confirm a Jump Across the Creek (JATC) and entry into Phase D.
If the structure holds, it suggests $2.80 to $3.20, with some analysts predicting longer-term breakout targets at around $7, or around 230% upside potential from current levels.
Institutional adoption of XRP increases goal quota by $8
US-based spot XRP ETFs continued to draw capital through December, extending their inflow streak to 29 consecutive trading days despite volatile market conditions.
According to data source SoSoValue, XRP ETFs recorded net inflows of $13.59 million on Friday, bringing cumulative inflows since launch to $1.37 billion.
XRP spot ETF net flows (day by day and cumulative). Source: SoSoValue
Total net assets stood at around $1.24 billion, although XRP price and the broader crypto market were under selling pressure at the tip of the month.
Although day by day inflows have cooled from early December highs of $30 million to $40 million, XRP ETFs still withdrew around $478 million over the month, underscoring robust institutional demand.
These continued inflows suggest that institutions behind the scenes are quietly absorbing XRP supply at the same time as price motion stays subdued.
At the identical time, XRP balances on exchanges have fallen to their lowest levels since 2018, indicating reduced liquidity on the sell-side.
XRP balances on exchanges. Source: Glassnode
These trends suggest tightening supply while demand persists, a market setup that has historically preceded stronger upside moves once overall selling pressure begins to subside.
Standard Chartered shared this view and predicted that XRP could rise to $8 by 2026 as institutional participation and long-term capital allocation proceed to extend.
Source: X
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This article doesn’t contain any investment advice or recommendations. Every investment and trading activity involves risks and readers should conduct their very own research when making their decision. While we attempt to offer accurate and up-to-date information, Cointelegraph doesn’t guarantee the accuracy, completeness or reliability of the data in this text. This article may contain forward-looking statements which might be subject to risks and uncertainties. Cointelegraph is not going to be accountable for any loss or damage arising out of your reliance on this information.
