XRP Today's News: 1.2 Billion ETF Inflows Support the Market, Rebound Imminent After Six Consecutive Declines?

XRP-0.75%
BTC0.78%
SOL0.56%

XRP fell for the sixth consecutive day to $2.0721 but is still up 11.5% this year. The US XRP spot ETF has accumulated inflows of $1.22 billion, with Canary leading at $394 million. Ripple emphasizes that the $2.25 billion acquisition and UK licensing will demonstrate practicality by 2026. The Senate’s review of the Market Structure Bill on January 15 is a key catalyst, breaking through $2.2 to open a mid-term target of $3.

XRP ETF Capital Inflows Provide Solid Buying Support

XRP ETF資金流量

(Source: SoSoValue)

Ripple’s entry into mainstream markets and XRP’s core position have boosted demand for XRP spot ETFs, tilting supply and demand in favor of XRP. Since mid-2025, the US XRP spot ETF market has seen a net inflow of $1.22 billion. According to data from SoSoValue, Canary XRP ETF maintains its lead with a net inflow of $394 million, leveraging its first-mover advantage. Bitwise XRP ETF, Franklin XRP ETF, and Grayscale XRP ETF also remain in strong demand.

This scale of capital inflow is significant in today’s XRP news. $1.22 billion equates to a continuous daily buy volume of about $5-6 million, providing strong structural support for the price. More importantly, ETF capital inflows indicate growing institutional confidence in XRP, contrasting with retail investor sentiment volatility.

Notably, the XRP spot ETF market outperforms the US Bitcoin and Solana spot ETF markets. As a reference, since its launch in October, the US Solana spot ETF has accumulated net inflows of $817 million. Meanwhile, since the launch of Canary XRP ETF on November 14, the US Bitcoin spot ETF has experienced net outflows of $2.94 billion. This relative performance suggests XRP is decoupling from BTC, forming an independent trend.

However, the newly launched 21Shares XRP ETF (TOXR) has reported net outflows of $7.77 million since its debut, which may delay new XRP spot ETF applications. Additionally, WisdomTree withdrew its S-1 filing for an XRP spot ETF last week, indicating not all institutions are optimistic about XRP. Nonetheless, the overall trend of capital inflows remains steady.

Canary Funds CEO Steve McClurg predicts XRP will diverge from BTC and the broader crypto market by 2026. Early 2026 price trends indicate XRP is already decoupling from BTC. Despite XRP rising 11.5% so far this year, BTC has only increased by 4.51%, and the total crypto market cap has grown by just 5.15%.

Market Structure Bill Becomes a Key Moment on January 15

While demand for XRP spot ETFs and XRP’s utility are crucial for its price outlook, progress of the Market Structure Bill in Congress remains vital. This week’s market focus will be on the Senate Banking Committee’s review of the bill on January 15. Given that the SEC lawsuit against Ripple is expected to conclude by August 2025, XRP remains highly sensitive to regulatory developments in the crypto space.

Over the weekend, a statement from the Senate Banking Committee boosted optimism: “Chairman Senator Tim Scott is advancing legislation on digital asset market structure—creating clear rules to protect ordinary people, keep innovation domestic, and safeguard US national security.”

However, legislative progress still faces uncertainty. After approval by the Senate Banking Committee, the bill must be reviewed and merged with the Agriculture Committee’s version, then submitted for full Senate vote. If passed, it will need approval from the House of Representatives and ultimately be signed by President Trump. US crypto program host Eleanor Terrett commented: “March is the earliest. If the House decides to amend the Senate’s bill, it might not be until summer.”

Historical Price Impact of Legislative Progress

July 17 House Passage: XRP surges 14.69% in one day to a high of $3.66

Government Shutdown Delay: XRP drops from $3.66 to a December low of $1.7712

January Rebound: Senate review expected to push XRP back above $2

Delays in the progress of the Market Structure Bill will challenge XRP’s upward prospects. XRP’s price remains constrained by US crypto-related laws and regulations, a sensitivity well-validated by historical price movements.

Technical Outlook and Target Price Roadmap

XRP日線圖

(Source: Trading View)

On January 11, XRP fell 0.79%, closing at $2.0721. XRP has declined for six consecutive trading days, breaking below the 50-day and 200-day moving averages, indicating a bearish long-term trend. Despite technical declines, fundamentals remain bullish and dominant. Holding the $2 psychological support is critical for short- to medium-term outlook.

From the daily chart, breaking above the $2.0717 50-day moving average will open a path toward $2.2. After surpassing $2.2, the 200-day moving average at $2.3330 will come into play. Continued breakthroughs of these averages suggest a trend reversal to the upside, paving the way to challenge the $2.5 resistance. Strong demand for XRP spot ETFs, increased real-world utility, and progress of the Market Structure Bill support a cautious bullish short-term (1-4 weeks) outlook with a target of $2.5. Mid-term (4-8 weeks) target is $3.0, and long-term (8-12 weeks) target is $3.66.

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