As cryptocurrency markets continue to reflect global economic and political shifts, XRP’s performance has taken center stage. In January 2026, XRP’s price dipped below the $2 mark, wiping out much of the recovery seen earlier in the year. Simultaneously, reserves of XRP on major exchanges like Binance and Upbit have surged, heightening concerns about potential sell-off pressure.
XRP Exchange Reserves Rising
According to CryptoQuant data, exchange reserves of XRP witnessed a significant uptick during January. Binance, for instance, reported reserves reaching 2.72 billion XRP, while Upbit held nearly 6.3 billion XRP. Cumulatively, exchange reserves now constitute nearly 10% of XRP’s circulating supply.
Interestingly, there appears to be a growing inverse correlation between Upbit reserves and XRP’s price. On-chain data suggests that Korean investors heavily influence these price movements. For instance, while XRP’s price dropped from $2.40 to $1.83, Upbit reserves consistently climbed. Such patterns raise alarms about the potential for downward price pressure during periods of high reserves on exchanges.
Whale Activity and Market Impacts
Adding to the bearish outlook are metrics related to whale transactions. Key indicators, such as Whale Exchange Transactions on Binance, show heightened activity as large holders transfer their XRP to exchanges. Typically, an increase in these transactions suggests impending selling pressure, further driving concerns about the market’s near-term outlook.
Meanwhile, XRP exchange-traded funds (ETFs) have also experienced notable outflows. For example, $53.32 million was withdrawn from Grayscale’s GXRP fund on January 20, marking the largest outflow since the ETF’s launch in November 2025. Analysts suggest that macroeconomic events, such as geopolitical tensions and tariff threats, have broadly contributed to these capital movements.
Persisting Optimism Despite Risks
Despite the challenges, several positive developments continue to support XRP. January saw a prominent rise in XRP ETF inflows, signaling institutional confidence despite short-term outflows. Total XRP ETF inflows for December 2025 amounted to $483 million, contrasting sharply with Bitcoin ETFs, which saw $1.09 billion in outflows during the tax-loss harvesting season.
Further bolstering optimism is the expansion of XRP Ledger (XRPL) applications in decentralized finance (DeFi). Ripple has successfully introduced RLUSD, a stablecoin on the XRPL network, leveraging partnerships with global institutions to provide innovative solutions. Additionally, solid trading liquidity—processing between $20 million and $80 million daily—continues to demonstrate institutional commitment to the token.
Market Projections
The $1.88 support level remains a critical point for XRP. Should the price hold above this level, there is potential for a retest of $2.40 in the near term, particularly if ETF inflows continue to rise. However, a break below $1.88 could trigger a sharp decline to $1.25, posing further challenges to investors.
Recommendation: Stay Informed
For investors navigating this uncertain market, staying informed remains essential. Reliable tools, such as trading platforms and market analysis resources, can help make informed decisions. Additionally, consider exploring innovative financial solutions like hardware wallets for secure crypto storage or leveraged exposure through ETFs to diversify your portfolio.
Product Recommendation: If you’re seeking to boost your DeFi investments, try incorporating Ledger Nano X, a trusted hardware wallet for secure cryptocurrency storage. Its advanced security features and compatibility with XRP make it an excellent choice for safeguarding your digital assets.
Stay updated with the latest crypto insights, trends, and analysis to make the most of XRP’s evolving market landscape.
