XRP’s Path to New Peaks: Institutional Momentum Builds Amid Price Lull

At the World Economic Forum in Davos, Ripple CEO Brad Garlinghouse struck a decidedly bullish tone, even as the broader cryptocurrency market paused for breath. He forecasts the industry will achieve fresh all-time highs within the current year. This optimism emerges against a backdrop of recent price weakness, creating a notable divergence with robust underlying network metrics. For investors, this raises a critical question: is the market underestimating the pace of institutional adoption?

A closer examination of on-chain data reveals a market displaying underlying health, contrary to its recent price performance. While XRP's value has declined over 8% on a weekly basis, currently trading around $1.97, key network indicators tell a different story.

• Transaction Activity: The network recently processed 1.45 million transactions in a single day, marking its highest daily volume in six months.
• Exchange Reserves: Holdings on centralized exchanges have plummeted to their lowest level since 2018. This movement of assets into private, cold storage by investors and ETFs is effectively reducing the readily available supply.
• ETF Inflows: Since late 2025, cumulative inflows into XRP-focused exchange-traded funds have surpassed $1.37 billion.

Regulatory Tailwinds and Institutional Adoption

Garlinghouse, in a discussion with CNBC, argued that the growing engagement from major financial institutions is not yet reflected in current valuations. He identified two primary catalysts: the anticipated conclusion of the long-running SEC lawsuit by March 2025, and the regulatory clarity provided by the "GENIUS Act." According to the Ripple CEO, these developments have fundamentally improved the landscape for digital assets, even if the price impact has been delayed. This view finds support from analysts at Standard Chartered, who see potential for significantly higher valuations by the end of 2026.

Should investors sell immediately? Or is it worth buying XRP?

Navigating a Critical Technical Juncture

Despite the positive fundamental backdrop, the short-term technical picture presents challenges. The token continues to grapple with the psychologically significant $2.00 level, which it has so far failed to hold convincingly. Market technicians identify the zone around $1.80 as a critical support area; a breach could open the door for a deeper correction toward $1.25. Conversely, a bullish breakout would require a sustained move above the $2.05 to $2.26 resistance band, accompanied by rising trading volume.

The current market dynamic represents a tug-of-war between macroeconomic uncertainty and solidifying network fundamentals. The decisive factor for XRP's next major move will be whether the institutional demand highlighted by Garlinghouse can overcome the tightening exchange supply and catalyze a sustained upward trend.