XRP Coiled: Whales Signal Liquidity

What to Know:

• XRP shows signs of recovery, supported by rising liquidity and network activity.
• Improved crypto conditions and technical indicators suggest a potential turning point for XRP.
• Increased liquidity and institutional interest could lead to more stable price action for XRP.

Ripple’s XRP is displaying signs of renewed strength in early January, mirroring the broader crypto market’s improved sentiment. After a period of consolidation, XRP has posted gains, signaling a potential shift in market dynamics. On-chain data and technical analysis now suggest a more robust network, poised for further price appreciation.

Rising Liquidity on XRPL DEX

Analysis indicates a significant expansion of the XRP Ledger’s infrastructure, suggesting enhanced readiness for sustained price movement. A key observation is the sharp increase in liquidity on the XRPL decentralized exchange, reaching $173 billion. This growth is notable because liquidity typically declines during price corrections, but in this case, it continued to rise, indicating new capital entering the market. This suggests that market makers and large liquidity providers are actively positioning themselves for a potential volatility event or a long-term trend change.

Institutional-Grade Participation

Since December 10, larger and more frequent liquidity spikes have been observed, suggesting the entry of institutional participants. This development is crucial, as it allows for the execution of substantial orders without causing significant price fluctuations. The presence of institutional-grade liquidity can contribute to a more stable and mature market structure for XRP.

Increased Network Activity

The rise in liquidity has been accompanied by increased network activity. XRPL DEX transactions have reached 890,268, indicating that the available liquidity is being actively utilized, reflecting genuine demand across the network. This surge in usage reinforces the idea that the network is not only attracting capital but also facilitating more transactions, a positive sign for the long-term health of the XRP ecosystem.

Buying Pressure and Technical Breakout

Current price action is being driven by stronger buying pressure and reduced selling activity. The Taker Buy Ratio has moved above 0.5, indicating that buyers are in control of market activity. Moreover, XRP recently broke out from a falling wedge pattern, following short liquidations. These liquidations have added momentum, helping the crypto asset maintain its position above a key level.

Institutional Interest via XRP ETFs

Further evidence of institutional demand can be seen in the steady interest in regulated XRP exposure. US-listed spot XRP ETFs have recorded inflows, demonstrating continued investment despite previous price volatility. This sustained interest from institutional investors underscores the growing acceptance and integration of XRP into traditional financial products.

In conclusion, XRP’s recent performance is supported by a confluence of positive factors, including increased liquidity, rising network activity, and institutional interest. These developments suggest a potential turning point for XRP, with the possibility of more stable and sustained price appreciation in the near future.

Related: XRP Signals Hottest Crypto Trade of 2026

Source: Original article