XRP, the digital asset utilized within Ripple's payment network, has experienced a slight price dip, falling below the $2 mark, despite positive factors such as growing ETF demand and a robust network. As of today, January 19, 2026, XRP is trading around $1.96 to $1.98.

ETF Demand and Institutional Interest

Renewed institutional interest, particularly concerning discussions around exchange-traded products, has significantly shaped XRP's outlook in 2026. The momentum surrounding potential spot XRP ETFs has continued, with asset managers maintaining filings and signaling intentions to broaden institutional access if regulatory conditions permit. Net inflows into XRP spot ETFs reached $56.83 million during the trading week of January 12 to January 16, indicating growing investor confidence. Grayscale XRP ETF (GXRP) and Bitwise XRP ETF (XRP) are leading the inflows, with historical total net inflows of $287 million and $310 million, respectively. The total net asset value of XRP spot ETFs stands at $1.52 billion, with a cumulative historical net inflow of $1.28 billion. Standard Chartered Bank analyst Geoffrey Kendrick believes the approval of spot XRP ETFs will unlock demand among retail and institutional investors, potentially driving XRP to $12.50 by 2028. He projects that spot XRP ETF inflows could total $4 billion to $8 billion during the first year.

Network Performance and Adoption

The XRP Ledger (XRPL), launched in 2012, continues to operate reliably as an open-source, permissionless, and decentralized technology. It offers low transaction costs (approximately $0.0002), fast settlement times (3-5 seconds), and high scalability (1,500 transactions per second). Ripple continues to expand its payments and settlement infrastructure, particularly in emerging markets, positioning XRP as a bridge asset for cross-border transfers. Ongoing integrations with payment providers and fintech platforms have reinforced the utility-driven narrative around XRP. Ripple CEO Brad Garlinghouse anticipates XRP could handle 14% of the $150 trillion annual transactions facilitated by SWIFT within a few years.

Price Analysis and Market Sentiment

XRP has traded in a volatile environment since the beginning of 2026, with investors balancing regulatory and institutional narratives against price momentum and broader macro uncertainty. XRP rallied over 25% to its January 6 high before giving back some of those gains. Selling behavior from longer-term holders has remained a headwind, offsetting fresh inflows from shorter-term participants. A technical analysis indicates that XRP's price action is tracing out a three-wave corrective move, potentially leading to a more pronounced bearish path if key price levels are not reclaimed. XRP needs to hold above the $2.0689 - $1.9569 support zone to attempt another move to the upside. Conversely, if XRP remains below this week's high at $2.1905, downside pressure dominates, and the $2.0689 - $1.9569 support zone is expected to be probed further.

Factors Influencing XRP's Price

• Regulatory Clarity: Lessened legal uncertainties around XRP have boosted interest in its use for cross-border payments and real-world asset tokenization.
• Market Structure Bill: Delays to the US Senate Banking Committee's Market Structure Bill markup vote have triggered selling pressure.
• Macroeconomic Conditions: XRP remains sensitive to shifts in global macroeconomic conditions, as with other cryptocurrencies.

While constructive long-term narratives surround XRP, unresolved short-term constraints continue to subdue price action.