The leading altcoin by market capitalization is concluding the year in a phase of tight consolidation. Despite trading below the psychologically significant $2.00 threshold, significant underlying shifts are occurring. A notable divergence has emerged: institutional investors are accumulating substantial positions while the volume of tokens readily available on exchanges is plummeting.
Exchange Reserves Dwindle as Major Holders Accumulate
On-chain analytics reveal a striking trend among large-scale holders, often termed “whales.” Since December 22nd, wallets holding between 10,000 and one billion XRP have re-entered an accumulation phase. This activity contrasts with the behavior of smaller retail investors, who tended to sell during the Christmas week.
A particularly telling statistic is the movement of 800 million XRP off centralized trading platforms throughout December. The majority of these tokens are now held in cold storage wallets or with regulated custodians, effectively removing them from short-term market supply. Over the past 60 days, exchange reserves have contracted by nearly 45%. Should current demand trends persist, this withdrawal could precipitate a supply squeeze in early 2026.
Spot ETF Inflows Defy Market Stagnation
The launch of U.S. spot exchange-traded funds (ETFs) in mid-November 2025 has become a primary market driver. The pace of capital allocation has astonished seasoned observers, with over $1.14 billion flowing into these products in just six weeks of trading activity.
American investors allocated approximately $64 million to funds from Bitwise, Canary, and 21Shares in the last week alone. A notable pattern has developed: the ETFs have recorded seven consecutive weeks of net inflows since their inception. Total assets under management now stand at roughly $1.25 billion, signaling strong conviction through capital deployment despite a stagnant price environment.
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Ripple Strengthens Foundation Beyond Token Price
Separate from market movements, Ripple solidified its role as an infrastructure provider throughout 2025. RLUSD, its stablecoin launched in December 2024, has achieved a market capitalization of $1.3 billion and is being utilized for on-chain settlements and tokenized assets.
The company has deployed more than $2.45 billion in strategic acquisitions. This includes a $1.25 billion deal for Hidden Road, aimed at bolstering its prime brokerage services. Furthermore, the final settlement of its protracted legal dispute with the U.S. Securities and Exchange Commission (SEC) in August 2025 cleared a path, leading to a preliminary approval for a national trust bank charter.
Technical and Regulatory Crossroads for 2026
From a chart perspective, XRP faces immediate technical hurdles. The cryptocurrency must reclaim the $1.90 level to mitigate further downward pressure. The support zone between $1.80 and $1.86 has held thus far. A decisive break below this area could open a path toward the 52-week low at $1.81.
The regulatory landscape presents a potential catalyst. The U.S. Senate is scheduled to debate the CLARITY Act in January 2026, legislation designed to establish a comprehensive regulatory framework for digital assets. Should the act pass into law concurrently with the $1.80 support zone holding firm, XRP could assemble the necessary conditions to challenge its annual highs.
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