XRP price has remained under pressure over the past few weeks, with multiple recovery attempts failing to gain traction. As 2025 comes to a close, altcoins continue to succumb to bearish momentum after posting some negative results throughout the year.
Weak spot demand and cautious retail participation are weighing on price trends. However, institutional investor interest has emerged as the main stabilizing factor for XRP, preventing further drawdowns despite the sustained sell-off.
XRP is a favorite of institutions
Institutional investors have been the most consistent supporters of XRP throughout 2025. XRP recorded $70 million in inflows for the week ending December 27, according to CoinShares data. This pushed month-to-date inflows to $424 million, highlighting stable capital allocation even during a period of declining prices.
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Notably, XRP outperformed large digital assets during the same period. Bitcoin recorded $25 million in outflows, while Ethereum saw a significant increase in outflows, totaling $241 million.
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On an annual basis, XRP has seen $3.3 billion in inflows, underscoring the continued confidence of institutional investors despite the continued volatility and legal uncertainty surrounding the broader crypto market.
XRP ETF shows strength
Since the launch of the XRP ETF earlier this year, institutional support has expanded beyond traditional exchange-traded products. The XRP ETF has not recorded a single day of net outflows since its debut. Only one trading session ended flat with no capital inflows, reflecting the unusually strong consistency of demand.
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In an exclusive interview with BeInCrypto, Ray Youssef, CEO of cryptocurrency app NoOnes, emphasized that institutional investors are implementing structured long-term strategies.
“The accumulation of XRP in early December was a strategic positioning by market participants to capture rising ETF momentum. Similar to the early Bitcoin and Ethereum ETF launch cycles, institutional investors often accumulate assets before prices begin to reflect these developments,” Youssef noted.
He further stated that XRP is currently observed as a high-beta asset with a strong value proposition.
“[This is]thanks to the increased participation of institutional investors in trading the asset and the increasing mainstreaming of the asset. Despite the price weakness, traders still consider the current price point as a suitable entry opportunity to capture the growth potential once XRP’s performance finally mirrors the ETF momentum,” Youssef said.
XRP holders who refuse to hold
Long-term holders remain an important group heading into 2026. Historically, this group has played a stabilizing role during market downturns. Over the past year, long-term holders have alternated between accumulation and distribution, reflecting uncertainty surrounding XRP’s medium-term prospects.
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By Q4 2025, long-term holder behavior became dominated by sales activity. This shift signals a decline in investor confidence, which typically persists despite high volatility. If this lack of confidence continues into 2026, XRP could face increased downside risk. Sustained distributions from long-term holders often precede long-term consolidation or deeper adjustment.
XRP price may start moderately until 2026
XRP price is trading around $1.87 at the time of writing after dropping 38% in Q4 2025. Year-to-date performance shows the altcoin is down 9.7% from its opening price. December failed to generate positive momentum and the bearish mood strengthened towards the end of the year.
Nevertheless, 2026 may chart an independent course. Ray Youssef pointed out that XRP could remain mostly stagnant throughout January and potentially the entire first quarter.
“Unless a decisive macro catalyst emerges, XRP is likely to continue consolidating and trading between $2 and $2.50 in January and the first quarter of 2026. The market has yet to recover from the sustained volatility and geopolitical turmoil due to trade tensions. Numerous deleveraging and risk-off episodes have made traders hesitant to increase directional exposure until market headwinds have completely dissipated,” Youssef emphasized.
The broader goal remains recouping recent losses. A sustained move above $3.00 would be needed to reestablish the bullish structure and pave the way for an all-time high of $3.66.
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Downside scenarios remain important if selling pressure increases. Continuing consolidation combined with reduced demand could push XRP lower. A decisive break below the $1.79 support level will likely expose the $1.50 zone. Such a move would invalidate the bullish neutral theory and strengthen the bears’ advantage.
Seasonality requires additional caution.
“Structural weaknesses across the market led to XRP underperforming in December. Shrinking liquidity, weak risk appetite, and AI bubble fear selling spilled over into high-risk and digital asset markets, suppressing the impact of expected seasonal tailwinds. The crypto market had one of its worst fourth-quarter performances in nearly seven years,” Yousef further noted.
Historical XRP performance over the past 12 years shows that January has delivered an average gain of 3%. However, the median return reflects a decline of 7.8%, indicating frequent underperformance.
Therefore, unless there is a significant change in market sentiment and investor behavior, the XRP price prediction suggests that the price may struggle in the early months of 2026 until a clearer directional trend emerges.
