XRP’s Record Inflow Streak Ends as Market Enters Consolidation Phase

XRP has experienced a turbulent start to 2026. Following a significant rally, the digital asset's spot ETFs have recorded their first net outflows, breaking a historic streak of inflows and briefly unsettling the market. However, while some institutional players are taking profits, underlying blockchain data presents a contrasting picture, showing a substantial surge in network activity and large investor interest.

A key factor for XRP's medium-term price trajectory is the tightening of its available supply. Holdings on centralized exchanges have plummeted to their lowest level in seven years. This scarcity is driven not only by ETF accumulation but also by projects like the Flare Network, which lock up coins. A declining supply on trading venues, meeting a potentially steady or rising demand, could provide price support on positive market catalysts.

ETF Inflows Halt After 55 Days

For the first time since their launch in November, U.S. spot ETFs for XRP saw net withdrawals. A 55-day streak of uninterrupted inflows came to an end on January 7, with approximately $40.8 million exiting the funds. This movement was almost exclusively attributable to the 21Shares ETF. Market experts largely interpret this as classic profit-taking following XRP's rapid ascent to $2.40 and the subsequent market correction. Despite this single day of outflows, the overall picture remains positive, with a cumulative $1.2 billion having flowed into these products since inception.

Should investors sell immediately? Or is it worth buying XRP?

Whale Transactions Signal Underlying Strength

As the ETF market pauses, activity on the XRP Ledger points to robust fundamental interest. The number of transactions valued over $100,000 has reached a three-month high. Such movements often indicate the ledger is being used increasingly for settlements and institutional testing, not merely for holding assets. This thesis is bolstered by the expansion of RippleNet and the growth of the RLUSD stablecoin, which now has a circulating supply of $1.3 billion.

Technical Reset and Key Levels

Currently trading around $2.11, XRP is in a consolidation phase. Recent market action has been characterized by a cleansing of leveraged positions in derivatives markets. Both long and short positions were liquidated in a rare sequence, often freeing the market from speculative excess. The price zone between $2.07 and $2.08 proved to be solid support, where buyers consistently stepped in to absorb selling pressure.

Outlook: A Battle at Technical Junctures

The market setup for the coming weeks is defined by a struggle around key technical levels. With the market now in a cleaner state, traders are focusing on the resistance area near $2.17. A decisive breakout above this level on high volume could bring Standard Chartered's long-term price target of $8 back into view. This scenario, however, is contingent on ETF inflows stabilizing once more and the crucial support at $2.07 holding firm.