XRP breaks above the 50-day EMA as legislative optimism and ETF inflows put the $2.2 resistance level firmly in focus. Eight straight weeks of XRP-spot ETF inflows tilt the supply-demand balance, reinforcing a bullish medium-term outlook. Rising active accounts and ETF demand support bullish targets of $3.0 medium term and $3.66 longer term. The US Senate Banking Committee announced a January 15 markup date for the Market Structure Bill, signaling bipartisan support for crypto-friendly regulations and fueling demand for XRP.
Notably, XRP has rallied 20% since the year-end announcement, triggering a bullish trend reversal. XRPBTC has gained 9.89% in January, underscoring XRP’s greater sensitivity to legislative developments and demand for spot ETFs. On-chain data underscored the shift in market sentiment as XRP extended its recovery from the December low of $1.7712. According to XRP Scan, the number of active accounts (unique senders) increased to 19,505 on January 4, its highest level of the month and second highest since December 9.
XRP-spot ETF market reported net inflows of $43.16 million in the reporting week ending January 2. Last week’s inflows extended the weekly inflow streak to eight weeks, tilting the supply-demand balance in XRP’s favor. XRP-spot ETF issuers have reported total net inflows of $1.18 billion since launch. Diverging flow trends have fueled speculation about an XRP decoupling from BTC.
The token advanced 3.59% on Sunday, January 4, closing at $2.0908. The breakout above the 50-day EMA would push toward the 200-day EMA and the $2.5 resistance level. Near-term price drivers include XRP-spot ETF flow trends, US economic data, the Fed’s rate path, and crypto-related regulatory developments. Reclaiming $2.0 and a move toward the $2.2 level underpinned a marked improvement in market sentiment.
A breakout above $2.2 would bring the upper trendline into play. A sustained move through the upper trendline would validate the bullish structure and indicate a bullish trend reversal, supporting the targets of $3.0 and $3.66. Outlook: Increased expectation of a March Fed rate cut and dovish BoJ rhetoric would likely drive demand for XRP. Extended inflows into XRP-spot ETFs and bipartisan support for the Market Structure Bill reinforce the positive longer-term bias.
In summary, increased institutional demand for XRP-spot ETFs and crypto regulatory headlines support a medium-term move to $3.0. A March Fed rate cut and the Senate passing the Market Structure Bill would reaffirm the longer-term price target of $3.66. Looking beyond the medium term, these positive price events are likely to send XRP past its all-time high $3.66, targeting $5 over a 6-12 month time horizon.
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