Institutional demand for XRP remains robust, with U.S.-listed spot XRP ETFs continuing to draw net inflows into early January, even as the token faces short-term price pressure.

XRP slipped to $2.18 after failing to break above $2.28, tempering its strong early-2026 rally. The token had recently been highlighted by CNBC as the “new crypto darling” after outperforming bitcoin and ether in the first week of the year, a spotlight that underscores growing interest in XRP as a relatively under-owned large-cap alternative. Yet, the recent pullback is a reminder that even popular narratives must navigate key technical resistance.

ETF inflows have been a major driver behind XRP’s momentum. Data show the products extending a run of net inflows into January, in contrast to the stop-start flow patterns seen in bitcoin and ether ETFs. At the same time, on-chain activity has improved, social sentiment has turned bullish, and exchange reserves have drifted lower — all signs traders often interpret as reduced near-term supply.

Despite these supportive factors, XRP faces familiar momentum risks. Price can stall or reverse quickly if broader market sentiment falters, and recent tape confirms this tension. Over the 24 hours ending Jan. 8, XRP fell 4.4%, dropping from $2.28 to $2.18 after repeated rejections at resistance triggered a stronger selloff. The inflection point came Jan. 7 around 15:00 UTC, when trading volume surged to 133.8 million — roughly 121% above the 24-hour average — as price broke through consecutive supports.

The decline appears to reflect active selling rather than a low-volume drift. Price formed a clear sequence of lower highs and lower lows toward $2.15, where dip demand finally emerged. On the 60-minute chart, the subsequent rebound has been constructive but early: XRP based near $2.173–$2.174, printed a higher low, and climbed back into the $2.18–$2.19 range on improving participation. This positions the market in a familiar setup — short-term bounce momentum within a broader structure that still needs to reclaim overhead supply.

Technically, $2.28 remains the key hurdle. Until XRP can reclaim and hold above that level, rallies will likely encounter selling pressure. On the downside, as long as $2.15 holds, the pullback can be read as consolidation within a strong early-year trend rather than a reversal.

Looking ahead, a sustained move above $2.20 followed by a break over $2.28 would signal renewed momentum, opening a path toward $2.30–$2.32 and potentially the upper end of the broader range. Conversely, a breach of $2.15 would likely shift attention to demand near $2.10, with $2.00 returning as a potential magnet if risk appetite softens.

Bottom line: XRP continues to lead early-year performance, but recent price action underscores that outperformance does not erase resistance — it simply highlights where the market is testing conviction.