XRP in 2026: Key Inflow Streak Broken – What’s Next for the Crypto Giant?

• ETF Profit-Taking Halts 55-Day Inflow Streak
• Leverage Purge Creates Buying Opportunity
• Whale Activity Screams Accumulation
• Supply Crunch Looms Large
• The Make-or-Break Level
• FAQs

XRP’s turbulent start to 2026 has seen its record-breaking ETF inflow streak snap, sparking brief market jitters. But beneath the surface, institutional interest is heating up, with on-chain activity hitting a 3-month high and exchange reserves drying up to 7-year lows. Is this a temporary pullback or the calm before another rally? Let’s dive into the data.

ETF Profit-Taking Halts 55-Day Inflow Streak

For the first time since their November 2025 launch, U.S. spot XRP ETFs recorded net outflows on January 7, 2026 – with $40.8 million exiting primarily from 21Shares’ fund. Analysts at BTCC attribute this to routine profit-taking after XRP’s rapid climb to $2.40 and subsequent correction. Despite the blip, the big picture remains bullish: these ETFs have still absorbed $1.2 billion in total inflows. (Source: TradingView)

Leverage Purge Creates Buying Opportunity

Currently trading at $2.11, XRP is consolidating after a violent liquidation cascade wiped out overleveraged positions on derivatives markets. Interestingly, both long and short bets got wrecked in what veteran trader “CryptoHawk” calls a “rare self-cleaning mechanism.” The $2.07-$2.08 zone has emerged as strong support, with buy orders stacking up like pancakes at a Sunday brunch.

Whale Activity Screams Accumulation

While ETF flows stutter, the XRP Ledger tells a different story. Transactions exceeding $100k just hit a 90-day high, suggesting big players are moving coins off exchanges. This aligns with RippleNet’s expansion and the growth of Ripple’s stablecoin RLUSD ($1.3B in circulation). As my colleague at BTCC jokes, “Whales don’t transfer bags this heavy just for fun.”

Supply Crunch Looms Large

Exchange reserves haven’t been this thin since the 2019 crypto winter. Between ETF buying and projects like Flare Network locking up tokens, available supply is evaporating faster than morning dew in the Sahara. Basic economics suggests this could fuel upward pressure – especially if institutional demand keeps growing.

The Make-or-Break Level

All eyes are now on the $2.17 resistance. A clean breakout there could reignite the bull run toward Standard Chartered’s $8 long-term target. But traders should watch the $2.07 support like hawks – if that fails, we might revisit the $1.80s. Personally, I’m keeping one hand on my buy button and the other on my seatbelt.

FAQs

Why did XRP ETFs see outflows on January 7?

The $40.8 million outflow marked natural profit-taking after XRP’s 55-day inflow streak and 28% November-December rally.

How significant is the whale activity surge?

With $100k+ transactions at 3-month highs, it suggests institutional players are actively accumulating rather than just holding.

What’s causing the XRP supply crunch?

ETF purchases and projects like Flare Network are removing tokens from circulation, while trading volumes remain elevated.