XRP Bullish Signal Strengthens: ETF Funds Absorb Nearly 1% of Circulating Supply, Expectations for Breakthrough in 2026 Heat Up

Recently, XRP’s market performance has once again become a focal point for crypto investors. Data shows that XRP has successfully held its key support levels in the downtrend, while ETF funds linked to XRP continue to flow in, absorbing nearly 1% of the circulating supply in a short period. Several analysts believe that this structural change is laying the groundwork for a potential upward breakout for XRP in 2026.

From a price structure perspective, XRP stabilized after retesting an important support zone this week. Previously, a rally pushed its market cap to the third-largest non-stablecoin crypto asset globally. Technical analyst EGRAG CRYPTO pointed out that on the five-day chart, XRP is still operating within a clear downtrend channel, but the current movement resembles a “controlled correction” rather than a trend reversal. He believes that if the price can hold above the 21-period exponential moving average and effectively break through resistance near the upper channel, the probability of an upward breakout is about 60%.

On the capital front, XRP’s market activity has significantly increased. Commentator John Squire observed that XRP experienced a surge in trading volume in a very short period, indicating participation not only from retail investors but also from some large funds entering the market simultaneously. More importantly, since mid-November 2025, the spot ETFs related to XRP have continuously recorded net capital inflows, absorbing nearly 1% of the circulating supply within over a month, providing substantial support to the price from a supply and demand perspective.

As of early January, XRP’s price remained above recent support levels, achieving double-digit gains over the past week and briefly surpassing major competitors in market cap. This is seen as an important signal that XRP is gradually recovering from the correction phase at the end of 2025.

However, short-term technical indicators remain mixed. On one hand, the buy-sell ratio has risen to a nearly one-month high, indicating easing selling pressure; on the other hand, some analysts point out that recent large-volume candlesticks may suggest strong sell orders near resistance levels. If overall crypto market sentiment weakens, XRP could still face a phase of correction.

Overall, ETF capital inflows, supply absorption, and increasing institutional attention are strengthening the medium- to long-term bullish case for XRP. For investors paying attention to XRP price trends, ETF fund movements, and the crypto market outlook in 2026, the current stage may be a critical point for trend decision-making.