XRP broke free of its downtrend, but its next leg up depends on holding a key breakout level. At press time XRP was up 4.33%, extending a year-to-date gain of roughly 19% as buyers piled in. The rally has been driven by a mix of strong ETF inflows, constructive technical signals and benign macro data — a combination that has attracted institutional interest and renewed momentum for the token. Why institutions are buying - XRP-linked exchange-traded products (ETPs) recorded inflows of $15.04 million on January 13 and $12.98 million on January 14, lifting total net assets to about $1.54 billion over the two-day span, according to SoSoValue. - That institutional demand has been cited as a major factor underpinning the recent price advance. Macroeconomic tailwinds - U.S. core CPI for January 13 printed 2.6%, below the 2.7% estimate and the lowest reading since March 2021. The cooling inflation reduced immediate rate-hike pressure and increased expectations for rate cuts — a backdrop that has generally favored risk assets, including crypto. (Source: X) Technical picture - TradingView data showed a bullish MACD crossover on January 13, signaling a breakout from the weekly downtrend. - Momentum indicators are supportive: XRP’s RSI sits near 56.6, indicating room to run without being overbought. - Key levels to watch: holding above $2.10 is crucial for the bulls; a sustained break and hold above that zone could open the way toward the next resistance near $2.40. Conversely, dropping back below $2.10 would risk invalidating the breakout and cooling the rally. Regulatory developments to monitor - A draft version of the CLARITY Act — flagged on CoinMarketCap — proposes that XRP could be treated as a non-ancillary asset if included in an exchange-traded product by January 1. The proposal was scheduled for Senate discussion on January 15. While the draft could materially affect institutional positioning if it becomes law, it had not passed as of the latest reports. Bottom line ETF inflows, favorable inflation data and bullish technicals have combined to push XRP higher, but the uptrend will need to hold the $2.10 breakout level to sustain momentum toward $2.40. Regulatory clarity from proposals like the CLARITY Act could further influence institutional appetite if they advance. 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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