XRP (XRP) down 3.49% in the last 24 hours

Gate News Bot Message, January 21, according to CoinMarketCap data, as of press time, XRP (XRP) is trading at $1.91, down 3.49% in the past 24 hours, with a high of $2.19 and a low of $1.88. The 24-hour trading volume reached $3.692 billion. The current market capitalization is approximately $116.069 billion, a decrease of $4.193 billion from yesterday.

Analysis of Recent Key Market Drivers for XRP

1️⃣ On-chain structure shows historical similar signals, short-term funds and long-term holdings diverge

XRP’s current market structure is highly similar to the phase before the 2022 sharp correction, sparking widespread discussion about price trends. On-chain data shows that short-term participants with a holding period of 1 week to 1 month are accumulating at prices below the cost basis of 6 to 12-month holders. This structure indicates that early high-position buying funds are under ongoing psychological and paper pressure. The second similarity comes from volume changes: recently, XRP’s trading volume has not increased in tandem with price declines but has continued to decrease, indicating a lack of effective support during the current downturn, with cautious sentiment among dip-buying funds. The third risk signal is reflected in technical indicators: comparing the current cycle with the 2021-2022 phase, the momentum structure of the MACD histogram shows high consistency. If XRP falls below the key support zone of $1.8 to $1.9, the downside space could further expand, and the important psychological threshold of $1 will face testing.

2️⃣ Continued hawkish stance of the Federal Reserve suppresses liquidity expectations, tightening overall risk asset impact

Federal funds futures indicate that the probability of the Fed maintaining the benchmark rate unchanged in January has risen to 95%, with the target range remaining at 3.50%-3.75%. Expectations for the March meeting are also conservative, with about a 75% chance of maintaining the current rate, and the rate cut probability further compressed to about 25%. This policy stance contrasts with Trump’s calls for rate cuts, highlighting the Fed’s cautious attitude toward inflation. Under constrained liquidity expectations, risk assets including XRP are under significant pressure, with the total cryptocurrency market cap falling about 2.8% earlier this week, with mainstream assets weakening in tandem.

3️⃣ Institutional allocation demand remains relatively stable, continuous net inflows into spot ETFs provide price support foundation

US XRP spot ETFs have maintained stable net inflows recently. Franklin XRP ETF XRPZ continued to record single-day net inflows of $1.12 million around January 20, with total net inflows reaching $288 million. Grayscale XRP ETF GXRP’s total net inflows have reached $287 million, and Bitwise XRP ETF’s total net inflows are $310 million. The current total assets of XRP spot ETFs remain at $152 million, with cumulative net inflows of $1.28 billion, and ETF net assets account for 1.20% of XRP’s total market cap. Despite recent price pressure from the Fed’s hawkish stance, institutional investors’ demand for XRP via ETFs remains stable, indicating their long-term valuation view has not fundamentally changed.

4️⃣ Ripple’s EU regulatory framework improves, payment infrastructure compliance system strengthened

Ripple has received preliminary approval for an Electronic Money Institution (EMI) license from the Luxembourg Financial Industry Supervisory Commission, laying the foundation for providing broader payment services within the EU once final compliance conditions are met. Coupled with the previously obtained FCA license in the UK, Ripple is establishing a dual regulatory framework to more efficiently promote cross-border payments, stablecoin applications, and asset tokenization settlement in Europe’s core financial markets. As the EU is a leading jurisdiction in establishing a comprehensive digital asset regulatory framework, this certainty helps financial institutions advance blockchain technology from pilot to commercial scale. This progress directly enhances XRP’s practical application scenarios in on-chain financial infrastructure.

5️⃣ On-chain settlement of real-world assets accelerates, XRP gains high-value functional demand

Dubai has launched a government-supported real estate trading platform allowing investors to buy and trade real estate shares via blockchain, with XRP directly used as the core settlement tool. This is a significant case where high-value real-world assets are first realized on-chain through compliant splitting, trading, and settlement. In this application, XRP is no longer just a trading asset but becomes a direct settlement medium for property share transactions. Leveraging XRP Ledger’s high throughput and low transaction costs, property token transfers and settlements can be nearly real-time, providing a clear demand basis for XRP in real-world finance and gradually shifting it from a speculative asset to a functional financial infrastructure.

6️⃣ Evernorth IPO preparation advances, XRP treasury’s value anchoring mechanism further improved

Ripple-supported XRP treasury entity Evernorth plans to launch its IPO in Q1 2026 via a SPAC merger on NASDAQ, with trading code XRPN. The company holds 388 million XRP tokens, currently valued at about $812 million. CEO Asheesh Birla stated the timing is “nothing short of perfect,” emphasizing the company’s favorable regulatory environment, government support, and readiness to adopt institutional investors. Evernorth not only provides XRP exposure but also handles custody, compliance, and security obligations, representing a significant institutional-level XRP holding solution. This development will further strengthen XRP’s position as a regulated financial asset and build a long-term bridge between traditional finance and the XRP ecosystem.

7️⃣ On-chain user base continues to expand, wallet growth reflects improved market participation

Since mid-December 2025, the XRP whale list has added over 25,000 new wallets, setting a new monthly growth record. This growth covers all address segments from the top 0.1% to the top 10%, indicating that funds of various sizes are increasing holdings or entering the market. The total number of wallets holding XRP has increased from 7.41 million to over 7.51 million, with about 99,000 new addresses added in just the past month. Since the low of $1.84 on December 17, 2025, XRP has rebounded about 14%. The simultaneous increase in wallet count and price suggests expanding demand fundamentals, helping to ease selling pressure and enhance price resilience.

8️⃣ Australian trading activity hits new highs, market recognition significantly improves

XRP has achieved a key breakthrough in the Australian cryptocurrency market, becoming the most traded digital asset on the platform, a first in nearly four years for XRP in trading activity. Strong local community support and the deep integration of XRP with Ripple’s ODL cross-border payment system are key reasons for its rapid volume increase. From an asset perspective, XRP’s appeal is not solely due to price volatility but also its practical use in low-cost, high-efficiency cross-border payments. As the regulatory environment becomes clearer, network usage rises, and community engagement strengthens, trading volume continues to grow.

This message is not investment advice; please be aware of market volatility risks.