Institutional purchases support XRP at the $2.08 mark despite fluctuations in spot market popularity

ser_ngmi · 2026-01-12T07:22:06+00:00

XRP's market shows a dichotomy: retail activity is low while institutional investors increase their positions. Despite a slight price drop, institutional interest remains strong, with $3.3 billion attracted this year. However, reduced trading volume and cautious retail activity indicate a challenging environment for speculative trading. Technical indicators suggest potential for optimism, but sustained growth requires stronger buyer support. The market's future will depend on institutional interest and resistance levels.

ser_ngmi

2026-01-12 07:22:06

Abstract generation in progress

XRP Coin demonstrates an interesting dichotomy in the current market: while retail trading activity remains sluggish, institutional investors are actively increasing their positions. In recent days, the asset is trading at $2.08, reflecting a minimal daily decline of 1.24%, although the monthly trend tells a more complex story. Despite numerous attempts for the price to break out of the resistance corridor, trading volume data indicates caution among most market participants.

The institutional demand engine operates uninterrupted

CoinShares analysts have recorded that XRP inflows maintain a positive momentum regardless of short-term price fluctuations. In the week leading up to December, the crypto asset received $70 million, boosting the quarterly inflow to $424 million. These figures are especially notable compared to other digital assets in the same period: Bitcoin experienced an outflow of $25 million, Ethereum lost $241 million. The total amount of institutional capital invested in XRP since the beginning of the year reaches $3.3 billion — a sign of consistent interest from professional players, even amid the unstable conditions of the broader crypto market.

The volume-price gap: a signal of retail hesitation

Currently, XRP’s market capitalization has reached $126.01 billion, but the 24-hour trading volume is only $87.84 million, indicating a significant reduction in speculative activity. Derivative databases show that open interest in futures contracts has gone through a cycle: from peaks above $10 billion during earlier surges to the current range of $3–$4 billion. This unwinding of position sizes suggests voluntary risk reduction and liquidation of forced leveraged positions.

Technical indicators leave room for optimism

The RSI currently stands at 45.14 with an upward trajectory, signaling a recovery in buying pressure. The MACD shows the line above the signal line with a positive histogram in the green zone, but the gap between the lines remains narrow — indicating that the bullish momentum has not yet reached full strength. Sustained growth requires more active support from buyers to establish above resistance.

Recovery will depend on the resilience of institutional interest and technical resistance levels, which will define the next volatility cycle.

XRP0,9%

BTC1,58%

ETH1,97%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.