XRP climbed 25% in the first week of January, reaching approximately $2.40 on Tuesday before pulling back to test key support levels today (Wednesday), 7 January 2026. The token outperformed Bitcoin, which gained 6%, and Ethereum, which rose 10% over the same period.

CNBC's Power Lunch host Brian Sullivan noted that "the hottest crypto trade of the year is not Bitcoin, it is not Ethereum, it is XRP.” The altcoin has now established itself as the third-largest cryptocurrency by market capitalization.

Why is XRP going up today, and how high could its price go in 2026? I answer these questions and provide a technical analysis of the XRP/USDT chart in this article.

XRP Price Today. ETF Demand Diverges from Spot Market

Four spot XRP exchange-traded funds drew nearly $100 million in the first days of 2026, with cumulative inflows now sitting at $1.37 billion since launch. The products have yet to record a single day of net outflows since debuting in late 2025.

CNBC's Mackenzie Sigalos pointed out an unusual pattern in the flow data. "During the doldrums of Q4, you actually saw a lot of people piling into those XRP ETFs, which is the exact opposite of what happens with the spot Bitcoin and Ether ETFs, where people really move in tandem with the price of the coin," she said during the broadcast.

WATCH: CNBC SAYS "THE HOTTEST CRYPTO TRADE OF THE YEAR IS NOT BITCOIN, IT IS NOT ETHER, IT IS $XRP." pic.twitter.com/moYcx3OtG0

— The Wolf Of All Streets (@scottmelker) January 6, 2026

Investors appeared to treat XRP as "a less crowded trade" compared to Bitcoin or Ethereum Ethereum Ethereum is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Created in 2014, Ethereum now stands as the second largest cryptocurrency by market cap at the time of writing.As a decentralized cryptocurrency network and software platform, Ethereum represents the most prominent altcoin. Ethereum also enables the creation Distributed Applications, or dapps. Understanding EthereumEthereum boasts its own programming language, Ethereum is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Created in 2014, Ethereum now stands as the second largest cryptocurrency by market cap at the time of writing.As a decentralized cryptocurrency network and software platform, Ethereum represents the most prominent altcoin. Ethereum also enables the creation Distributed Applications, or dapps. Understanding EthereumEthereum boasts its own programming language, Read this Term, buying during Q4 2025 price weakness and positioning for percentage gains that materialized in early January. On Dec. 31, XRP ETFs recorded $5.58 million in net inflows while Bitcoin and Ethereum ETFs saw outflows of $357.7 million and $224.8 million, respectively.

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Recently, the popular retail CFD broker Interactive Brokers added XRP to its trading offering, alongside Solana, Cardano, and Dogecoin.

XRP’s Technical Picture Shows Mixed Signals

According to my technical analysis, XRP tested its 200-day exponential moving average twice this week before falling back below $2.30 on Wednesday. The token briefly traded above $2.40 during Tuesday's session but closed down nearly 2% at $2.30 as gains were erased before the daily close.

On Wednesday, Jan. 7, XRP declined an additional 2.5% to test the 2.24 area. That level represents the upper boundary of a consolidation range that held from mid-October through November. A sustained break below the 200 EMA would signal a return to sideways price action within that earlier range.

Chart analyst "The Great Mattsby" noted that the XRP/BTC ratio is approaching a breakout above the monthly Ichimoku cloud for the first time since 2018, which historically signals potential outperformance against Bitcoin. However, spot price action remains sensitive to liquidity pockets and stop-driven moves despite the improving relative strength setup.

Bullish engagement is coming back. Been a while since I had a crypto post get this much attentionhttps://t.co/8B97CJv3Bt

— The Great Mattsby (@matthughes13) January 6, 2026

As outlined in my previous analysis, key support zones sit at $1.91 to $1.80, corresponding to late 2025 lows and mid-2025 levels, with deeper support at $1.25. On the upside, resistance appears near $3.00, followed by September peaks around $3.20 and last year's July highs above 3.60

Why XRP Price Is Surging?

Exchange Balances Hit Multi-Year Lows

XRP reserves on Binance dropped to their lowest levels in two years, according to CryptoQuant data. High exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term balances typically indicate preparation for selling, while declining reserves suggest tokens are moving to private wallets for longer-term holding.

Network activity also picked up. XRP Ledger transactions increased more than 50% over the past two weeks, nearing 1 million daily transactions for the first time since 2022. The increase reflects growing usage in cross-border payment settlements and decentralized exchange activity.

Japan Partnerships Add Institutional Layer

Ripple announced collaborations with Mizuho Bank, SMBC Nikko, and Securitize Japan to accelerate XRP Ledger adoption across Japan's financial infrastructure. Mizuho Bank brings institutional scale to cross-border payments and liquidity management use cases, while SMBC Nikko, the investment banking arm of Sumitomo Mitsui Financial Group, connects blockchain infrastructure with capital markets expertise.

Securitize Japan adds a tokenization capability, enabling the issuance and management of regulated digital securities on the XRP Ledger. The partnerships position Japan as a cornerstone of Ripple's expansion across Asia.

In December, Ripple received conditional approval from the U.S. Office of the Comptroller of the Currency to charter Ripple National Trust Bank. The approval follows passage of the GENIUS Act, which President Trump signed in July 2025 to establish federal stablecoin regulations.

Ripple President Monica Long told Bloomberg on Tuesday that the company's November fundraise at a $40 billion valuation was "very positive and favorable for Ripple," but there are no immediate plans for an initial public offering.

XRP Price Prediction: How High Will XRP Go in 2026?

Standard Chartered remains the most bullish major institution on XRP, with Geoffrey Kendrick projecting the token could reach $8.00 by the end of 2026. This represents a potential 247% increase from current levels and assumes ETF inflows reach $10 billion throughout the year.

Kendrick’s methodology centers on supply dynamics. If XRP ETFs maintain their current pace and attract $10 billion in total inflows by late 2026, this capital would need to purchase approximately 4–5 billion tokens at average prices around $2.20. Combined with the existing 45% decline in exchange balances, from 3.95 billion to 2.6 billion tokens, this would create substantial supply-side pressure.

As detailed in my earlier XRP price prediction analysis, the path to $8.00 faces several hurdles. Technical analysis suggests XRP may need to test support near $1.25 before establishing a foundation for sustained gains. Consensus forecasts across multiple platforms show a range of $2.71 to $8.60 for 2026, with an average prediction around $3.90.

Scenarios for XRP in 2026:

• Conservative case ($3.00): Modest ETF success with limited utility gains beyond current adoption
• Base case ($3.90–$5.12): Steady ETF inflows and moderate cross-border payment growth
• Bullish case ($8.00): $10 billion in ETF inflows with institutional support and regulatory clarity

Options-based analysis from Jeff Anderson, Head of Asia at STS Digital, provides market-implied probabilities rather than directional forecasts. XRP shows a 25% probability of finishing above $2.40 and a 10% probability of exceeding $3.90 by Dec. 31, 2026, according to current volatility and skew data.

XRP Price Analysis, FAQ

How high can XRP realistically go?

Short-term technical levels point to resistance near $3.00, with further upside potential toward $3.20 and $3.60 if momentum sustains. Longer-term forecasts from analysts range widely, from conservative targets around $2.60 to bullish scenarios reaching $8.00 or higher, depending on ETF adoption rates and institutional demand patterns.

Will XRP reach $10?

Reaching $10 would require sustained institutional capital inflows and significant expansion of real-world payment adoption beyond current levels. Some analysts have projected potential for double-digit prices contingent on multi-billion-dollar annual ETF inflows and cross-border payment integration at scale. However, such scenarios depend on variables including regulatory clarity, macroeconomic conditions, and broader crypto market sentiment that remain difficult to forecast.

What is the XRP price prediction for 2026?

Price forecasts for 2026 vary widely among analysts. Conservative models project average prices between $2.30 and $2.50, with potential peaks near $2.60. More optimistic scenarios cite continued ETF demand and institutional adoption as drivers for targets between $3.00 and $8.00. AI-based predictions show similar divergence, with average estimates around $1.92 and upper-bound scenarios above $2.00.

Why is XRP going up today?

XRP’s early January gains reflect a combination of continuous ETF inflows, declining exchange reserves, and increased network transaction activity. Investors who bought during Q4 2025 weakness positioned for outperformance as less-crowded positioning relative to Bitcoin and Ethereum played out. Partnerships with Japanese financial institutions and federal approval for Ripple’s trust bank charter have added institutional credibility.

Why is XRP getting so much hype?

Media attention increased after CNBC labeled XRP “the hottest crypto trade of 2026” based on its 25% first-week performance. The token’s ETF products have attracted $1.37 billion in cumulative inflows without recording a single outflow day, a pattern that diverges from Bitcoin and Ethereum ETF flows. Social sentiment indicators show bullish positioning from both retail and institutional accounts, while on-chain metrics, including network transactions and declining exchange balances, signal growing usage.