XRP Signals Rising Liquidity

What to Know:

• Despite a slight price dip this month, on-chain data reveals a positive trend for XRP, with an increase in “millionaire” wallets.
• XRP-tied ETFs have seen significant net inflows this month, contrasting with the outflows experienced by Bitcoin ETFs.
• XRP’s price remains in a downtrend, suggesting a divergence between long-term accumulation and short-term market risk aversion.

XRP has experienced a roughly 4% price decrease this month, commencing the new year with a slight downturn. However, a deeper dive into on-chain data suggests a more optimistic underlying trend. Specifically, the number of wallets holding at least 1 million XRP has seen a notable increase, marking the first such rise since September 2025. This uptick, coupled with substantial inflows into XRP-linked exchange-traded funds, paints a complex picture of the digital asset’s current standing.

Millionaire Wallets Signal Confidence in XRP

Data from Santiment indicates a resurgence in the number of “millionaire” wallets, those holding at least 1 million XRP. This figure has climbed by 42 this month, reaching a total of 2,016, effectively reversing a four-month decline. Santiment highlighted this development as “an encouraging sign for the long-term.” This metric is particularly relevant as it reflects the conviction of larger holders, often viewed as more sophisticated investors with a longer-term outlook. The increase in these wallets suggests a growing confidence in the future prospects of XRP, potentially driven by factors such as regulatory clarity or anticipated adoption by financial institutions. Monitoring the continued growth of these large-holder wallets will be crucial for gauging sustained bullish sentiment.

ETF Inflows Highlight Institutional Interest in XRP

Adding to the positive signals, U.S.-listed spot exchange-traded funds (ETFs) tied to XRP have recorded a net inflow of $91.72 million this month, according to data from SoSoValue. This follows substantial inflows of $666 million and $499 million in November and December, respectively. This trend is especially noteworthy when contrasted with the performance of Bitcoin ETFs, which have experienced net outflows of $278 million this month, following over $4 billion in outflows in the final two months of 2025. The divergence suggests a specific interest in XRP among ETF investors, possibly due to its unique positioning in the cross-border payments space and Ripple’s ongoing legal battles reaching a resolution. The continued inflow into XRP ETFs could provide further price support and validation for the asset.

Price Action Lags Positive On-Chain Metrics

Despite the encouraging on-chain data and ETF inflows, XRP’s price action remains subdued. The cryptocurrency is currently trading around $1.88, reflecting a 1.7% decrease over the past 24 hours. The token has struggled to consistently trade above its 50-day moving average, with rallies repeatedly encountering resistance near the $2 mark. This divergence between positive fundamentals and lackluster price performance suggests a potential disconnect between long-term accumulation strategies and short-term market sentiment. It’s possible that larger holders are building positions gradually, anticipating future catalysts such as favorable regulatory developments or increased institutional adoption. The current market structure indicates a cautious approach, with investors seemingly prioritizing long-term value over immediate gains.

Analyzing the Current Outlook for XRP

The current situation for XRP presents a mixed bag of signals. While on-chain data and ETF flows indicate growing institutional interest and long-term accumulation, the price action has yet to reflect this positive sentiment. This suggests that XRP is caught between long-term positioning and short-term risk aversion prevalent in the broader crypto market. Without a significant upswing in the overall crypto market, particularly in Bitcoin and Ethereum, XRP may struggle to translate its improving fundamentals into sustained price appreciation. The key will be monitoring regulatory developments and Ripple’s ongoing legal proceedings, which could act as potential catalysts for a more decisive move.

In conclusion, XRP’s current market position reveals a divergence between positive on-chain metrics and lagging price action. While increased millionaire wallets and ETF inflows suggest growing confidence in XRP’s long-term potential, the token’s price remains constrained by broader market sentiment and short-term risk aversion. Investors should closely monitor regulatory developments and overall crypto market trends to gauge the potential for a sustained upside move in XRP.

Related: XRP Signals Encouraging Accumulation

Source: Original article