XRP is entering a new phase as institutional demand strengthens through ETF inflows, even while price action remains subdued.
As of January 5, 2025, XRP traded near $2.266, reflecting muted movement that contrasted sharply with improving on-chain and derivatives indicators.
This divergence has started a fresh debate over whether XRP is consolidating amid tightening supply or simply mirroring broader market hesitation.
Meanwhile, adoption across the XRP Ledger has continued to build beneath the surface.
Over the past 30 days, the XRPL ranked as the fastest-growing real-world asset network, posting nearly 18% growth and trailing only Canton.
 
During the same period, it outpaced Ethereum, Solana, and Avalanche in relative RWA expansion. Historically, such infrastructure-led adoption has often preceded repricing, though timing remains dependent on broader liquidity conditions.
At the same time, ETF activity has become a key supply-side development. XRP balances on centralized exchanges have fallen to a seven-year low, dropping to roughly 1.6 billion tokens from 3.76 billion in October 2025.
This decline coincided with sustained U.S. spot XRP ETF inflows, which have exceeded $1 billion since launch and extended a multi-week streak.
As ETFs steadily accumulated tokens, immediate sell-side availability continued to shrink, effectively reducing liquid supply even as spot prices struggled to advance.
However, derivatives data show why upside momentum has remained capped. Heavy overhead liquidity persists in the $2.50-$3.20 region, reflecting dense clusters of unclaimed liquidations from leveraged positions.
These zones, built from repeated failed advances, have acted as resistance and kept XRP trading below areas of concentrated exposure.
For now, XRP remains range-bound between $1.73 support and $2.32 resistance since mid-November. Momentum indicators reinforce the stalemate, with the RSI near neutral levels and the MACD mixed.
Looking ahead, markets will be watching whether ETF-driven absorption and accelerating XRPL adoption can eventually translate into price discovery.
A sustained breakout will likely require expanding volume and broader participation. However, the underlying setup suggests that supply dynamics are shifting in ways that could matter into 2026.
