In a remarkable start to 2026, the cryptocurrency market has come roaring back, led by an explosive surge in XRP that has captured the attention of traders and analysts alike. Over the past week, XRP has staged a nearly 33% rally from its late December lows, climbing to its highest level since mid-November and outpacing gains from other major tokens such as Bitcoin and Ethereum, according to The Block and The Defiant. The move has been fueled by a confluence of technical breakouts, surging trading volumes, and a wave of inflows into newly popular XRP exchange-traded funds (ETFs).
On January 5, 2026, XRP traded at $2.4—up 12.34% in just 24 hours—marking its best price since November 13, 2025, as reported by The Block. The rally was underpinned by a breakout from a falling wedge pattern and the price sustaining above its 50-day moving average, classic markers of positive momentum. "We recently saw a breakout from a falling wedge pattern, with the price sustaining above its 50-day moving average, classic markers for positive momentum," Rachael Lucas, a crypto analyst at BTC Markets, told The Block. She also pointed to aggressive buying and short covering as key drivers: "Short positions in XRP were aggressively liquidated, over $250 million in an hour, clear evidence that aggressive buying and short covering are fuelling rapid upside."
The technical momentum wasn’t limited to chart patterns alone. According to BeInCrypto, the 20-day exponential moving average (EMA) was closing in on the 50-day EMA, signaling a potential bullish crossover that could support further trend continuation. Meanwhile, on-balance volume (OBV)—which tracks whether volume is flowing into or out of an asset—broke above a descending trendline, indicating that buyers were participating in the breakout. However, OBV failed to make a new high despite the price surge, suggesting that while buying pressure is improving, it’s not yet accelerating aggressively. The rise in OBV also slowed near the $2.41 zone, with a long candle wick indicating that sellers might be returning at this level.
On-chain data adds further nuance to the XRP setup. Long-term holders—wallets that have held XRP for extended periods—have been accumulating aggressively since December 30, 2025. Their net daily holdings jumped from about 9 million XRP to 47 million XRP, a staggering 420% increase during the rally, according to BeInCrypto. However, this accumulation has slowed since January 4, suggesting buyers are becoming more selective as prices—and net unrealized profits—rise. The long-term holder NUPL (net unrealized profit or loss) metric has climbed back to levels last seen in early December, a zone where XRP previously corrected by about 14% over the following nine days. While this doesn’t guarantee a repeat, it does show that the market is entering a zone where profit-taking historically increases.
ETF flows have played a pivotal role in amplifying risk appetite for XRP. Kronos Research CIO Vincent Liu told The Block that the rally was "further supported by strong inflows into spot XRP exchange-traded funds, which amplified risk appetite." On January 5, spot XRP ETFs posted $46.1 million in net inflows—the largest daily net inflow since December 3, 2025—and total daily trade volume reached $72.15 million, the highest since November 24 and the second-highest overall. Since the first XRP ETF launched on November 13, 2025, these funds have recorded eight straight weeks of net inflows totaling $1.23 billion. BTC Markets’ Lucas attributed this steady demand to "renewed regulatory clarity post Ripple SEC settlement, interest in XRP’s role in cross-border payments, and visibility from long-term institutional investors seeking diversified exposure beyond just BTC and ETH."
Across the broader market, major cryptocurrencies have also enjoyed robust gains. Bitcoin traded around $94,340 on January 5, up 3.5% in 24 hours, while Ethereum rose 3.2% to trade near $3,240, according to The Defiant. Both tokens posted weekly gains of 8% and 11%, respectively. Solana and BNB also posted solid advances, while Render and Worldcoin led among top gainers. The total crypto market capitalization now stands at approximately $3.31 trillion, up 3% over the past day, with trading volumes reaching about $139 billion. Bitcoin dominance is measured at 57.2% and Ethereum at 11.8%. The GMCI 30 index, which tracks the top 30 cryptocurrencies, was up 3.31% in the past 24 hours and 12.33% over the past week.
This resurgence has also spilled over into the traditional equity markets, where major U.S. crypto stocks soared double-digits on January 5. Bakkt (BKKT) led gains with a 31.5% jump, closing at $15.52, while Kindly MD (NAKA) gained over 24%. Crypto mining companies such as American Bitcoin (ABTC), Hut 8 (HUT), IREN (IREN), and Cipher Mining (CIFR) posted gains between 12% and 13.5%. Crypto exchanges Coinbase, Gemini, and Robinhood each gained between 7% and 7.5%, reflecting renewed investor enthusiasm in the space, as reported by Yahoo Finance.
Yet, the market’s volatility has not come without casualties. In the 24 hours prior to January 5, the cryptocurrency market saw liquidations totaling $522 million, with short liquidations amounting to $438 million and long liquidations to $84 million, according to CoinDesk. Coinglass data reported that over $427.6 million in positions were liquidated in the past 24 hours, with Bitcoin accounting for $228 million, Ethereum for $73.4 million, XRP for $17.5 million, and Solana for $14.3 million. Analysts say short positions in XRP were particularly hard-hit, with over $250 million liquidated in just one hour, further fueling the rapid price ascent.
The rally has brought XRP to a crucial technical juncture. All technical and on-chain signals converge near the $2.41 zone, which cost-basis heatmaps highlight as a major supply cluster—about 1.56 billion XRP were accumulated there. When price revisits such zones, many holders sell to break even, creating resistance. For the bullish XRP price prediction to remain valid, analysts say XRP needs a clean daily close above $2.41. If this happens, the next upside target sits near $2.69, representing an additional 13% upside from current levels. If XRP fails to reclaim $2.41, initial support lies near $2.26, with deeper support around $1.90, and the broader structure remains intact as long as price holds above $1.77.
Broader macroeconomic and geopolitical factors have also shaped market sentiment. Gold and silver, traditional safe-haven assets, rallied strongly after the ousting of Venezuelan President Nicolás Maduro and his plea of not guilty in a New York federal court following a U.S. military operation, as reported by CNN and The Defiant. Gold rose more than 2.5% to $4,443 per ounce, while silver climbed roughly 4.6% to above $76. The crypto Fear & Greed Index, meanwhile, stood at 26 on January 5, showing a significant recovery from 11 in mid-December, but still indicating lingering caution among investors.
As the dust settles from this week’s dramatic moves, all eyes are on whether XRP can decisively turn $2.41 from resistance into support. With technical, on-chain, and ETF flows all aligning, the next few days could determine if this rally marks the start of a new chapter for XRP and the broader crypto market—or just another fleeting surge in an already volatile landscape.
