XRP Holds Above $2 as Oversold Indicators Signal Potential Rebound Amid Record ETF Activity
XRP is trading at $2.09. It has stayed rather consistent over the previous 24 hours, even though it dropped 14% from its recent highs of
Quick overview
- XRP is currently trading at $2.09, having dropped 14% from its recent highs but maintaining stability above the crucial $2 level.
- Oversold conditions in XRP's price action suggest a potential bounce, as historical trends indicate that such situations often precede significant price increases.
- The XRP Ledger's recent 99% drop in activity is attributed to normal market behavior rather than technical issues, highlighting the importance of distinguishing between the two.
- Institutional demand for XRP ETFs has surged, with record trading volumes and net inflows, indicating a growing interest in XRP among investors.
At the time of writing, XRP XRP/USD is trading at $2.09. It has stayed rather consistent over the previous 24 hours, even though it dropped 14% from its recent highs of $2.41 hit in early January 2026. The asset’s ability to stay above the important $2 level comes at a time when several technical and fundamental elements are coming together to create a complicated but cautiously hopeful picture for the fourth-largest cryptocurrency.
XRP’s Oversold Technical Conditions Present Bounce Opportunity
Steph is a cryptocurrency expert. Crypto has found strong oversold conditions in XRP’s price action, with the stochastic RSI going below 25, a level that has traditionally been linked to big price rebounds. This technical situation has often come before big price increases in 2023 and 2024, which suggests that XRP may be ready for a big jump in the near future as selling pressure eases.
The way things are set up right now suggests that short-term traders have probably gone too far with their bearish wagers, making it a good time for a reversal. However, investors should keep in mind that oversold conditions might last longer than expected during bigger market downturns. This means that anyone who takes a position based only on these signals needs to be careful.
XRP Ledger Network Activity Plummets 99% Without Underlying Issues
At first, it looked bad that the XRP Ledger’s activity dropped by 99% over a 48-hour period. But an examination shows that this drop was mostly due to less liquidity and normal weekend trading patterns, not any problems with the network itself. The XRPL’s automated market maker (AMM) now manages 24,643 liquidity pools, 21,296 XRP pairs, and 15,733 tokens. These are worth about $24.1 million in total, which is about 2.1% of XRP’s huge $1.12 billion daily trading volume.
This short-term drop in activity shows how important it is to tell the difference between normal market behavior and real technical problems when looking at bitcoin networks.
Supply Dynamics and Tokenized Gold Could Fuel Future Growth
One important thing that supports XRP’s price forecast is that ETF structures can absorb supply. The $1.3 billion in ETF assets has taken more than 500 million XRP tokens out of circulation. If the amount of money coming into ETFs stays the same as it did in December, analysts say that by the end of the year, ETFs may lock up billions of dollars’ worth of XRP. This would create the kind of supply shortage that usually happens before prices go up a lot.
The XRPL ecosystem is also growing beyond payments with the addition of tokenized precious metals. In the third quarter of 2024, Meld Gold released gold and silver tokens. Each token is backed by one gram of real metal. Phil Kwok, the founder of Web3, has said that integrating tokenized gold may be “epic” for the ledger, possibly increasing transaction volume and creating new DeFi use cases. However, big issuers will need to have economic reasons to accept it.
Institutional Demand Drives Record XRP ETF Performance
The phenomenal growth of spot XRP exchange-traded funds in the United States may be the most positive news for XRP. The funds saw their largest weekly trading volume since they started, with $219 million in the week ending January 9. This was almost double the previous week’s $117.4 million and broke the previous record of $213.9 million established in late December 2025.
XRP ETFs had their first day of negative outflows on January 7, when $40.8 million was withdrawn. However, they still had $38.07 million in net inflows for the week. Since the funds started in mid-November 2025, total net assets under administration have grown to $1.47 billion. Canary Capital’s XRPC is in the top with $375.1 million, followed by Bitwise with $300.3 million and Franklin Templeton with $279.6 million.
Notably, XRP ETFs did better than Bitcoin and Ethereum ETFs during the first full trading week of 2026, while the more established products had a total of $749.6 million in withdrawals. This difference shows that XRP is a “less crowded trade” for institutional investors that want to go into crypto.
XRP Price Prediction: Cautious Optimism With Key Resistance Ahead
If oversold conditions cause XRP to recover, it looks like it could rise back to the $2.30-$2.50 region in the near future, based on current technical analysis and fundamental trends. The $2.00 level is still the most important support level. If it breaks below there, the $1.80-$1.85 zone could be exposed.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save