XRP Price Struggles Despite Strong Institutional and Market Attention
XRP slipped nearly 6%, falling from around $2.28 to near $2.18, as the token failed to sustain momentum above a critical resistance zone. The pullback comes after a strong start to 2026 that briefly positioned XRP as one of the best-performing large-cap cryptocurrencies, outperforming both bitcoin and ether in early trading sessions.
XRPs rally was fueled by a shift in market positioning. As bitcoin remained range-bound and ether struggled to regain traction, traders rotated into relatively under-owned large-cap alternatives, bringing XRP back into focus. This move was reinforced by steady institutional demand through U.S.-listed spot XRP ETFs, which have continued to record net inflows into early January.
Market indicators also supported the bullish narrative. Exchange reserves trended lower, suggesting reduced immediately available supply, while network activity and social sentiment improved, reflecting growing participation and optimism.
Resistance Levels Trigger Short-Term Pullback
Despite supportive fundamentals, price action has stalled at major resistance. XRP was unable to hold above the $2.28 level, a zone that has repeatedly capped upside moves. This failure invited short-term profit-taking and momentum unwinds, resulting in the recent decline.
Reclaiming and holding above $2.28 remains critical for trend continuation. While institutional inflows and sentiment remain constructive, the latest pullback highlights the risk that momentum-driven trades can reverse quickly if broader market conditions weaken or resistance persists.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.