The beginning of 2026 could hardly have been better for XRP, the prices being up 15% on the weekly chart, having cleared $2.16, levels not seen since early December.
The move has been underpinned by strong liquidity and persistent demand reflected in the nearly 18% uptick in daily trading volumes at the time of writing, January 6.
Overall, the result has been that XRP’s market cap has gone up by more than $18 billion in the span of seven days, going from $112.93 billion on December 29, 2025, to $131.28 billion at press time.
Why is the XRP price up?
XRP momentum indicators are also turning supportive. The cryptocurrency has reclaimed the 50% Fibonacci retracement level at $2.08 and the $2.07 pivot, while the MACD histogram flipped positive, signaling improving short-term trend strength. The Relative Strength Index (RSI) at 62 is more neutral, while the 200-day Exponential Moving Average (EMA) around $2.57 acts as a magnet.
Institutional participation also continues to grow. Specifically, U.S. spot XRP ETFs attracted $43.16 million in weekly net inflows, and their holdings now represent about 6.9% of XRP’s circulating supply.
Ripple’s first escrow of the year also gave the price a bit of a push, with 300 million fresh tokens entering circulation just as Japan’s new tax reforms reduced crypto taxes to 20% from 55% and approved the nation’s first XRP ETF. On the U.S. front, the move was further reinforced by the departure of SEC Commissioner Caroline Crenshaw, a known crypto critic and a major obstacle in the Ripple case.
Overall, then, XRP’s rally reflects a confluence of technical breakouts, positive developments in Asia and the U.S., and sustained ETF demand.
Featured image via Shutterstock
