XRP Holds At $1.89 as Institutional Inflows Offset Weak Demand

• Institutional inflows continue to support XRP despite weak spot demand and repeated failed price rebounds.
• XRP price recovers modestly on declining volume, indicating limited speculative participation.
• Falling futures open interest suggests leverage has been reduced as momentum stabilizes.

XRP has remained under pressure in recent weeks, as multiple rebound attempts failed to gain traction despite subdued spot demand. Price action has displayed cautious participation from retail traders, with selling pressure continuing despite intermittent intraday recoveries. While market momentum has weakened, institutional flows have continued to act as a stabilizing factor, limiting stronger downside moves during periods of broader market weakness.

Institutional investors have remained active in XRP even as price performance struggled to improve. According to CoinShares data, XRP recorded $70 million in inflows during the week ending December 27, lifting month-to-date inflows to $424 million. These inflows occurred during a period marked by declining prices, which suggests a continued allocation rather than reactive buying tied to short-term rallies.

Comparative data shows XRP attracting stronger institutional interest than several larger digital assets over the same period. Bitcoin posted $25 million in outflows, while Ethereum recorded $241 million in outflows. On a cumulative basis, XRP has attracted $3.3 billion in inflows, showing ongoing institutional engagement despite volatile conditions in the broader crypto market.

Price Recovery Emerges on Declining Volume

XRP traded at $1.89, representing a 2.47% increase over the past day. Market capitalization rose in parallel to $115.07 billion. Despite the price advance, trading activity weakened. The 24-hour volume declined by 18.43% to $1.66 billion, suggesting that a surge in speculative demand did not drive the upward move.

Derivatives data highlights a reduction in speculative positioning. XRP futures open interest expanded, rising from below $2 billion to peaks above $10 billion as prices rallied toward the $3.50–$3.80 range. That increase coincided with heightened volatility and leveraged positioning.

Following that, price pullbacks were accompanied by repeated declines in open interest, pointing to liquidations and deliberate risk reduction. From early September onward, open interest trended lower toward the $3–$4 billion range, while price action stabilized closer to the $2.00 area, suggesting excess leverage has been partially cleared.

Technical Indicators Reflect Stabilization

The Relative Strength Index (RSI) is at 45.14 and trending upward, signaling growing buying interest. A sustained move higher could support a near-term recovery.

Moreover, MACD readings show the MACD line above the signal line, and the green histogram signaling increasing upside momentum. But the narrow gap between the lines suggests bullish momentum remains tentative and could weaken without stronger follow-through from buyers.

Related: Top Global Bank Predicts XRP Price for 2026 With 4x Upside