Spot ETF Inflows Ignite XRP’s Path to $1.99 Breakout

Cash floods into crypto ETFs, and XRP is poised to catch the wave.

Forget the slow grind. A surge of institutional capital—the kind that moves markets—is hitting digital assets through spot exchange-traded funds. That liquidity isn't just sitting in Bitcoin; it's searching for the next major narrative. XRP, long caught in regulatory crosshairs, now has a clear runway as legal uncertainties fade. The technical setup is screaming breakout.

The $1.99 Target: More Than a Number

This isn't a random price plucked from thin air. Analysts point to a confluence of factors: a decisive break above key multi-year resistance, a textbook bullish flag pattern on the weekly chart, and a momentum shift that has sidelined money finally paying attention. The target represents a full measured move from the last consolidation phase, a classic technical projection. With ETF inflows acting as rocket fuel, the path to that level looks increasingly direct.

Why This Time Is Different

Previous XRP rallies were largely retail-driven and often fizzled under regulatory pressure. The current landscape has fundamentally changed. Institutional participation via ETFs provides a sustained bid. The asset's utility in cross-border settlements—a multi-trillion-dollar market—is moving from theory to pilot-to-production phases with major financial players. It's a shift from speculative trading to utility-based valuation. (Though, let's be honest, in crypto, the line between the two is often drawn in invisible ink.)

The liquidity from ETFs doesn't just lift one boat; it raises the harbor. As capital seeks alpha beyond Bitcoin and Ethereum, established altcoins with clear use cases and improving fundamentals become prime destinations. XRP's high liquidity and brand recognition make it a default choice for large allocators dipping their toes into the altcoin pool. This creates a powerful, self-reinforcing cycle of buying pressure and price discovery.

Risks Remain, But the Wind Has Shifted

No trade is a sure thing. Macro conditions can tighten, and crypto remains a volatile asset class. However, the dominant headwind—regulatory overhang—has transformed into a tailwind. The market is pricing in a new reality where XRP trades on its technological merits and adoption pace, not lawsuit headlines. The ETF inflow story provides the kind of fundamental catalyst that technical analysts dream of.

The setup is clear. Institutional money is here, charts are aligning, and the narrative has flipped. XRP's journey toward $1.99 isn't just possible; it's becoming the path of least resistance. Just remember, on Wall Street, a 'sure thing' usually means someone's about to sell you something expensive.

XRP Spot ETFs See Six-Week Inflows

According to ChartNerd, there have been six weeks of consecutive inflows to the Spot ETFs in the XRP market, causing the total net assets to rise to $1.14 billion. What is astonishing is that this increase in the net assets has been achieved at times when the price has been finding it difficult to MOVE up, giving rise to what is known as the hidden bullish divergence in the market.

XRP Tests Key $1.99 Resistance Level

As per the technical analysis, XRP was seen trending inside a descending broadening wedge, with the critical point of $1.99 being identified as the area to confirm the onset of the upward move. Token has managed to recover some of its lost territory, using the wedge as the point of support. The 20 and 50-day EMAs have already merged, and the critical point of passage has already been attained.

However, if XRP manages to successfully break back into the descending channel, the $1.99 level could be a strong source of resistance. Additionally, getting back to the 200-day EMA WOULD be crucial for the formation of a bullish crossover. Failure to do so would mean that XRP continues with its choppy ride until an unequivocal buy signal from the markets.

Market sentiment is still cautious. Bitcoin continues receiving robust net inflows, but concerns over macroeconomic trends and continuous selling pressure ensure volatile cryptocurrencies. 

Bitcoin might experience some resistance in and around the $70k level and could fail to move past $90k without overcoming critical resistance levels. In the past, the first month of the year has, in some years, offered positive support, but token and the entire crypto-market might require new impulses for a smooth uptrend.