3 Reasons Behind XRP’s Massive Surge and What’s Next for Ripple’s Price

Ripple’s native cross-border token stole the show on Tuesday, surging by double digits to a new seven-week peak of over $2.40 before it slipped slightly to just below that level.

Here are some of the possible reasons behind the asset’s recent resurgence, which drove it from under $1.85 to $2.40 in the span of just several days.

3 Possible Reasons

Although the entire crypto market has shown signs of revival since the start of the new year, XRP’s performance has dwarfed that of many of its larger-cap competitors. Perhaps the most evident reason behind its surge past $2.00 is the overall inflows into the spot Ripple ETFs, as the financial vehicles’ green streak has continued for nearly two months since the first one saw the light of day.

January 5 was a particularly positive day, with $46.10 million entering the funds. In fact, this was the highest single-day inflow recorded since December 3. Overall, the five spot XRP ETFs have attracted $1.23 billion in net inflows since November 13.

The second reason could be related to the declining XRP reserves on centralized exchanges. Data from Glassnode and CryptoQuant show a trend in which the number of tokens sitting on trading platforms has dropped by almost 60% since the October 2025 peak, to around 1.8 billion coins. Such moves are considered bullish for the underlying asset as they reduce the immediate selling pressure.

In third place comes the recent behavior by whales. These large market participants went on a massive selling spree since October, disposing of several billion tokens by the end of the year. However, their holdings have stabilized over the past week or so, and there have been no reports of large sell-offs.

What’s Next?

After surging by roughly 30% in a week, analysts have rushed to offer their views on what comes next for XRP’s price. CryptoWZRD noted earlier today that both trading pairs, against USD and BTC, have “rallied strongly as anticipated,” and predicted that “further upside is likely, which will help XRP push higher.”

CW claimed that the token has now broken out of a familiar structure and aims to surge toward its 2018 all-time high of $3.40. If it breaks through, the analyst predicted that the rocket will launch even further as there are no further resistance levels above.

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