XRP short-term pullback but fundamentals remain unchanged, multiple positive factors support long-term optimism

XRP experienced a short-term correction on January 13, with a quote of $2.05, down 2.18% over 24 hours. Although the price has pulled back, the fundamental support factors for XRP remain solid. Continuous ETF inflows, expanding ecosystem applications, and deepening institutional collaborations are providing long-term backing for this asset. This decline is more of a market phase adjustment rather than a trend reversal.

Short-term Technical Perspective: Pain During the Pullback

Price Performance and Trading Activity

As of press time, XRP is trading at $2.05, reaching a high of $2.32 and a low of $2.03 within 24 hours. The 24-hour trading volume is $3.092 billion, with a market cap of approximately $124.53 billion, ranking 4th. Compared to yesterday, the market cap has decreased by $2.773 billion.

Looking at a longer timeframe, XRP has fallen 14.35% over the past 7 days but has still gained about 32% since January, indicating this correction is just a short-term fluctuation. Notably, trading volume plummeted 58.41% in 24 hours to $1.1 billion, which often signals decreased market participation but could also be a normal part of the adjustment phase.

Technical Warning Signals

Analysts point out that a “gravestone doji” pattern may be forming on the weekly chart for XRP, which is considered a bearish reversal signal. Meanwhile, the US spot XRP ETF saw a net outflow of $40.8 million on January 7, breaking the previous streak of inflows. These technical signals are worth noting, but should be considered alongside more fundamental factors.

Fundamental Support: Multiple Positive Factors Still Present

Significance of ETF Inflows

Although there was a net outflow on January 7, it was quickly followed by inflows, which more reflects short-term profit-taking and position adjustments by investors rather than a rejection of XRP’s long-term value. Currently, the total net asset value of XRP spot ETFs remains between $1.47 billion and $1.49 billion, with a total net inflow of $1.22 billion. This level of institutional allocation provides a stable buying foundation for XRP.

Breakthroughs in Application Deployment

Dubai’s government-supported real estate trading platform marks an important milestone for XRP application. It shifts the perception from XRP as a speculative asset to a settlement tool for high-value real-world asset transactions. With XRP Ledger’s high throughput and low costs, transfer and settlement of real estate shares can be nearly real-time, providing clear real-world financial demand for XRP.

Market Landscape: Capital Rotation Reshaping Allocation

According to the latest data, the cryptocurrency market is recovering from consolidation, with trading volume rising and capital selectively rotating. Bitcoin’s dominance is weakening, and funds are favoring select altcoins. In this process, XRP has attracted attention due to ETF capital inflows and regulatory progress.

Meanwhile, Morgan Stanley has submitted an application for a Solana ETF, indicating institutional investors are further entering the crypto space. This expanding institutional participation is a long-term positive for assets with solid fundamentals, including XRP.

Future Trends: Reasonable Expectations Based on Current Information

Short-term Possibilities

The gravestone doji pattern on the technical chart is indeed a bearish signal, but considering the declining trading volume and stable institutional allocations, XRP may continue to fluctuate between $2.03 and $2.32 in the short term. If ETF capital inflows persist, support levels below may gradually be confirmed.

Medium-term Outlook

Several analysts have adjusted XRP’s medium-term targets based on current fundamentals. By 2026, analysts believe XRP has about a 40% to 50% potential upside to reach around $3, which is a significant increase from current levels. This outlook is supported mainly by ongoing institutional allocations, ecosystem expansion, and deeper collaborations between Ripple and financial institutions.

Long-term Imagination Space

If XRP ETF assets continue to grow, Ripple’s national bank license is officially approved (Ripple has obtained a UK FCA license), and institutional applications accelerate, XRP could reach the $10 to $15 range by 2027. Market perception of XRP has shifted from a purely legal dispute asset to a crypto project with long-term financial infrastructure potential.

Summary

While XRP’s short-term correction shows some technical warning signals, the fundamental support remains strong. Continuous ETF inflows, cross-chain ecosystem expansion, real-world application deployment, and deepening institutional cooperation all underpin XRP’s long-term value. This decline is more of a phase adjustment caused by decreased market participation rather than a trend reversal signal.

For long-term holders, this may be a relatively reasonable entry point. Traders should closely monitor ETF capital flows and technical support levels. Regardless, XRP’s transition from a speculative asset to a financial infrastructure is underway, and fluctuations during this process are normal market behavior.