XRP (XRP) increased by 1.30% in the last 24 hours

Gate News Bot Message, January 20th, according to CoinMarketCap data, as of press time, XRP (XRP) is currently trading at $1.98, up 1.30% in the past 24 hours, with a high of $2.19 and a low of $1.91. The 24-hour trading volume reached $2.982 billion. The current market capitalization is approximately $120.257 billion, an increase of $15.49 million from yesterday.

Analysis of Recent Major Market Drivers for XRP

1️⃣ Federal Reserve maintains hawkish stance, tightening interest rate expectations exert overall pressure on the crypto market

The Federal Reserve released a clear cautious stance in early 2026. Federal funds futures indicate a 95% probability of holding the benchmark interest rate steady in January, with the target range remaining at 3.50%-3.75%. Policy expectations for the March meeting are similarly conservative, with about a 75% chance of maintaining the current rate, and the rate cut probability further compressed to around 25%. This policy stance contrasts with Trump’s calls for rate cuts, highlighting the Fed’s cautious attitude toward inflation. Under limited liquidity expectations, risk assets including XRP are under significant pressure, with short-term funds tending to be conservative. The total cryptocurrency market cap retreated about 2.8% earlier this week, falling to around $3.13 trillion, with mainstream assets weakening simultaneously, and XRP’s weekly decline once expanded to 5.8%.

2️⃣ Spot ETF capital remains resilient, institutional allocation demand provides medium-term price support

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 reached $287 million, Bitwise XRP ETF’s total net inflows reached $310 million. Currently, the total net asset value of XRP spot ETFs remains at $152 million, with cumulative net inflows of $1.28 billion, and ETF net assets accounting for 1.20% of XRP’s total market cap. Despite recent price pressure due to the Fed’s hawkish stance, institutional investors’ allocation demand via ETFs remains stable, indicating their long-term valuation of XRP has not fundamentally changed. This structural demand provides important technical support at price bottom regions.

3️⃣ Ripple’s EU regulatory framework improvement, further strengthening of payment infrastructure compliance system

Ripple has received preliminary approval for an Electronic Money Institution (EMI) license from the Luxembourg Financial Industry Supervisory Commission, issued in the form of a “green light letter,” laying the foundation for Ripple to offer broader payment services within the EU after meeting final compliance conditions. 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 businesses in key European financial markets. Ripple President emphasized that the EU, as a leading jurisdiction in establishing a comprehensive digital asset regulatory framework, provides certainty that helps financial institutions advance blockchain technology from pilot phases to commercial scale. This progress directly enhances XRP’s practical application scenarios in on-chain financial infrastructure, providing regulatory certainty for institutional payment needs.

4️⃣ On-chain settlement applications for real assets accelerate, XRP gains high-value functional demand

Dubai 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 the first major case where high-value real-world assets are split, traded, and settled on-chain in a compliant manner. 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 real financial demand basis for XRP and gradually shifting it from a speculative asset to a functional financial infrastructure.

5️⃣ Evernorth IPO preparations accelerate, XRP treasury value anchoring mechanism further improved

Ripple-supported XRP treasury entity Evernorth plans to launch an IPO in Q1 2026 via SPAC merger and list on NASDAQ under the ticker XRPN. The company holds 388 million XRP tokens, currently valued at about $812 million. CEO Asheesh Birla stated the timing is “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 an important progress in institutional XRP holding solutions. This development will further strengthen XRP’s status as a regulated financial asset and build a long-term bridge between traditional finance and the XRP ecosystem.

6️⃣ On-chain user base continues to expand, wallet growth reflects active demand

Since mid-December 2025, the XRP whale list added over 25,000 new wallet addresses, 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 all sizes are increasing 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 increase in wallet numbers and price move in tandem, boosting market confidence in holding above the $2 support level. Growth in address count usually indicates an expanding demand base, helping to alleviate selling pressure and enhance price resilience.

7️⃣ Australian trading activity hits new highs, market recognition significantly improved

XRP has achieved a key breakthrough in the Australian crypto market, becoming the most traded digital asset on the platform, marking XRP’s first time in four years surpassing Bitcoin in trading activity. Strong local community support and the deep integration with Ripple’s ODL cross-border payment system are key reasons for the rapid rise in trading volume. From an asset attribute 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 regulatory environment becomes clearer, network usage increases, and community engagement strengthens, trading volume continues to grow. This change reflects a market shift from early speculative stages toward more rational, function-driven development.

8️⃣ Technical outlook remains supported, short-term correction still retains upside potential

XRP has recently shown a high-level consolidation pattern. After reaching a high of $2.41 on January 5th, the price gradually retraced and is now hovering between $2.00 and $2.20. The $2.00 level provides a Fibonacci support and aligns with short-term moving averages, maintaining a high-level consolidation structure. Although short-term upward momentum has weakened due to the Fed’s hawkish stance, there are no signs of trend reversal. If XRP can stay above $2.00, it retains the possibility of breaking through $2.22 or even $2.40; conversely, a confirmed drop below $2.00 could signal further correction toward $1.90–$1.80. The market is currently digesting the short-term impact of tightening rate expectations, but medium- and long-term support factors are still accumulating.

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