XRP is currently trading around the $2.10 mark after experiencing significant price movements earlier this month. The market has cooled following a recent leverage reset that cleared excess speculative positions. Notably, a Golden Cross pattern has formed, a technical indicator that previously signaled substantial price increases, prompting speculation about potential future gains.
Recent Market Dynamics and Leverage Reset
In a notable shift, the derivatives market underwent a rare double liquidation event on Binance Futures. On January 5, 2026, XRP’s price surged, leading to approximately $4.4 million in short liquidations as late sellers exited their positions. The upward trend was short-lived, as just a day later, nearly $5.5 million in long positions were liquidated, resulting in a price pullback. This sequence of events effectively removed leverage from both sides, leaving XRP to trade within a narrow range of $2.07 to $2.17 as traders await new catalysts.
Whale Activity and Institutional Support
With excess leverage cleared from the market, attention has shifted to on-chain data and institutional signals. According to data from CryptoQuant, large holders, often referred to as whales, continue to dominate the market, accounting for around 60% of XRP inflows to Binance. However, whale participation has been gradually declining since mid-December. This trend may indicate that major investors are stepping back after a period of intensive trading, contributing to market stabilization.
Institutional interest remains a crucial factor for XRP’s support. Since its launch, spot XRP exchange-traded funds (ETFs) have accumulated nearly $1.49 billion in inflows. Despite witnessing a $40.8 million outflow on January 7 during the recent price dip, the sustained interest from institutional investors highlights a long-term confidence in XRP’s potential, even if short-term sentiment fluctuates.
Technical analysis shows promising signs for XRP. Chart data from ChartNerd indicates that XRP has recently printed a Golden Cross on its 5-day Moving Average Convergence Divergence (MACD), with the histogram shifting into positive territory. The last occurrence of this signal was in July, shortly before XRP reached new all-time highs.
If historical patterns hold, there is potential for XRP to approach its previous peak of $3.68. As traders monitor these developments closely, the next movements in XRP’s price will be critical in determining market direction.
In summary, XRP’s current position at $2.10, combined with the emergence of a Golden Cross and strong institutional support, suggests a complex yet potentially bullish outlook as the market continues to evolve.
