The world of cryptocurrency has kicked off 2026 with mixed signals for XRP investors. Recent activity surrounding South Korean exchanges and U.S. ETFs has left the market buzzing, as investors assess potential trends for this prominent digital asset.
Korean Exchange Reserves Show Decline
In an intriguing start to the year, XRP reserves on Korean trading platforms Upbit and Bithumb fell by over 22 million tokens, a notable 0.14% of the total supply. These drops, which occurred during the first week of January, have drawn comparisons to similar trends observed in late 2024 when XRP experienced a 560% rally.
South Korea remains a major trading hub for XRP, with changes in exchange reserves often signaling broader market shifts. During late 2024, when XRP balances began exiting Upbit, prices skyrocketed from $0.50 to $3. Could this recent reserve decline indicate another bullish trend? Many investors are watching closely, especially since exchange outflows often suggest that holders are moving tokens into private storage—a typical sign of long-term accumulation rather than immediate sell-offs.
Whale Activity on the Rise
The XRP Ledger has also been abuzz with whale activity. On January 5, the ledger logged 2,170 transactions exceeding $100,000. This figure jumped to 2,802 the following day, marking the highest level of whale activity in three months. Such large movements by significant holders often act as precursors to price volatility, hinting at potential market growth or corrections.
These signals come at a time when speculation about supply shortages on trading platforms is building. Historical patterns show that such shortages can reduce short-term selling pressure, leading to upward price movements. However, experts caution against assuming a guaranteed rally.
ETFs Experience First Signs of Outflows
Adding complexity to the narrative, U.S. spot XRP ETFs recorded their first net outflow of $40.8 million on January 7, breaking a streak of consistent inflows since their launch in November. Leading the withdrawals was the 21Shares XRP ETF (TOXR), which saw $47.25 million in outflows. Conversely, Grayscale’s GXRP fund managed a modest inflow of $1.69 million.
Despite this outflow, institutional interest in XRP remains significant. Cumulative ETF net inflows stand at $1.2 billion, with $1.53 billion in total assets under management. However, some analysts believe these outflows may reflect cooling confidence among institutional investors, even as retail investors in South Korea demonstrate increasing engagement.
XRP’s Mixed Market Signals
Currently trading at $2.30—down from its July 2025 peak of $3.65—XRP markets remain unpredictable. The token’s historic rally between November 2024 and January 2025, during which prices surged from $0.50 to over $3, is still on the minds of traders. However, historical data also indicates that exchange reserves and whale activity alone may not always lead to bullish trends. Achieving a sustainable rally could depend on whether Korean retail activity offsets the cooling momentum among institutional traders.
Recommended Product: Ledger Nano X
For investors looking to securely store their XRP holdings, the Ledger Nano X hardware wallet is a reliable solution. With state-of-the-art security features and Bluetooth connectivity, it allows individuals to safely manage their cryptocurrency offline, reducing risks associated with exchange storage.
As the market progresses, investors should closely monitor trends from both retail and institutional sides, as these conflicting signals may provide clearer insights for XRP’s price trajectory in 2026.
