XRP’s January momentum has been powered by heavy spot buying and growing bullish sentiment, but recent market action shows a mixed picture. Quick snapshot - Rally: XRP is up about 14.5% so far this month, helped by strong spot purchases that kicked off January. - Pullback: Since Tuesday, 6 January, the token retraced as Bitcoin was rejected at the local resistance near $94.5k. - Sentiment: Santiment recorded a surge in positive sentiment during the retracement—fueled largely by retail “buy the dip” activity as XRP tested the $2 psychological support. - ETF flows: That optimism came despite the first-ever outflows from the XRP Spot ETF—about $17.7 million, per Santiment. What on-chain data shows - Whale accumulation: Glassnode’s supply-distribution data points to renewed accumulation among large holders. After a decline in wallets holding more than 100k XRP from September into late October/early November—most pronounced in the 1M–100M cohorts—mid-November onward saw most whale cohorts resume accumulation. The lone exception: the 1M–10M XRP wallets. - Retail vs. whales: Retail wallet balances have increased, but these smaller holders historically don’t move market price the way whales do. - Low profit-taking: CryptoQuant’s Coin Days Destroyed (CDD) metric shows limited profit-taking during the latest rally. The last notable CDD spike was on 10 December, while the recent upswing did not trigger significant long-term coin movement (a typical sign of sell pressure). - Buyer-dominant flow: Spot taker CVD (cumulative volume delta) has signaled buyer-dominant order flow since November—aligning with the whale accumulation trend and suggesting taker-buyers (market orders) are pushing price. What this means for price Taken together—strong spot buying, whale accumulation, little profit-taking and buyer-dominant order flow—the on-chain picture leans bullish. Analysts interviewed by AMBCrypto see the conditions as favorable for XRP’s rally to resume, with a near-term target of about $2.40—especially if Bitcoin can clear the $94.5k local resistance. Disclaimer: AMBCrypto's content is informational and not investment advice. Cryptocurrency trading is high risk; readers should do their own research before making decisions. © 2026 AMBCrypto Read more AI-generated news on: undefined/news

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