XRP Institutional Inflows Hit $424M Amid Extreme Retail Fear

As 2026 kicks off, XRP is experiencing a bearish trend with investor sentiment reaching extreme fear levels. Despite the negative outlook, historical trends suggest potential for a bullish reversal.

Key Insights

Periods of extreme negativity in sentiment have historically preceded XRP rallies, sometimes exceeding 1,000% gains.
XRP's sentiment is currently 20-30% more negative than averages from November, yet prices remain stable between $1.8 and $1.9.

Institutional Activity

ETFs for XRP saw inflows of approximately $424 million in December, highlighting strong institutional interest.
Institutional accumulation has reached about $1.3 billion over the past 50 days, often signaling market reversals.

Potential Reversal Scenarios

Historical data suggests a 70-75% chance of a bullish reversal within the next two to eight weeks.
Current conditions resemble past setups leading to substantial rallies, such as during the 2020-2021 cycle.

Price Scenarios for XRP

Bullish Scenario: Regulatory support or ETF applications could push XRP to $2.44-$2.82 or even $3.00-$3.20 if momentum continues.
Neutral Scenario: Gradual normalization with steady ETF inflows could see XRP rising to $2.16-$2.35.
Bearish Scenario: Prolonged extreme fear might lead to a drop below $1.85, testing support at $1.65-$1.70.

XRP

The altcoin has recently increased over 6% in the last 24 hours, reaching $1.98 amid broader crypto market recovery.