XRP News Today: ETF Demand Grows as Senate Markup Fuels Gains

XRP consolidated Monday’s rebound as US XRP-spot ETF inflows and crypto-related regulatory developments on Capitol Hill lifted sentiment.

The US XRP-spot ETF market extended its inflow streak on Tuesday, January 27, underscoring robust institutional demand.

Meanwhile, the US Senate Agriculture Committee announced the markup date for its draft text of the Market Structure Bill, lifting hopes of crypto-friendly legislation.

Notably, XRP’s two-day winning streak was the longest since early January, supporting the token’s bullish medium-term price outlook.

Below, I will explore the key drivers behind recent price trends, the medium-term (4-8 weeks) outlook, and the technical levels traders should watch.

US XRP-Spot ETFs Extend Inflow Streak

The US XRP-spot ETF market extended its inflow streak to five consecutive sessions on January 27, tilting the supply-demand balance in XRP’s favor. According to SoSoValue, XRP-spot ETF issuers reported $9.16 million in net inflows, following the previous day’s net inflows of $7.76 million.

Total net inflows since launching in November climbed to $1.25 billion, outperforming the US SOL-spot ETF market, which has seen net inflows of $877.7 million since October’s launch.

Meanwhile, the US BTC-spot ETF market faced another day of outflows on January 27, signaling a potential decoupling of XRP from BTC. The US BTC-spot ETF market has seen net outflows of $2.9 billion since the launch of the Canary XRP ETF (XRPC) on November 14.

Analysts attributed the robust demand for XRP-spot ETFs to the token’s increased utility, another critical tailwind.

US Senate Agriculture Committee Markup Looms

Hopes of the US Senate passing the Market Structure Bill have likely contributed to the resilient demand for XRP-spot ETFs. Crypto-friendly legislation is likely to boost XRP adoption.

The US Senate Agriculture Committee rescheduled its markup on the draft text for the Market Structure Bill to January 29. The Agriculture Committee delayed its previously scheduled January 26 markup due to bad weather.

Markups and Senate Committee votes are crucial steps toward the Bill’s passage to a full Senate floor vote. If the Agriculture Committee passes the draft text on January 29, the focus will shift to the Banking Committee’s timelines for its amended draft text and markup.

The Banking Committee withdrew its draft text and postponed a January 15 markup after Coinbase (COIN) pulled its support for the Market Structure Bill. Coinbase CEO Brian Armstrong highlighted key reasons for withdrawing his support, including:

“Draft amendments that would kill rewards on stablecoins, allowing banks to ban their competition.”

Crucially, US banks and crypto representatives will have to find common ground to avoid roadblocking much-needed US crypto legislation. US banks have warned of a potential $6 trillion exodus from the banking system if legislation allows for stablecoin yields, given that stablecoin yields offer higher rewards on deposits than US banks. The withdrawal of deposits would erode banks’ lending capabilities, net profit margins (NIMs), and hit their record-high net profits.

Andrew Scaramucci recently summed up the US Banks’ attempts to thwart competition from the DeFi space, stating:

“The whole system is broken: The banks do not want the competition from the stablecoin issuers, so they’re blocking the yield. In the meantime, the Chinese are issuing yield, so what do you think the emerging countries will choose as a rail system, the one with or without yield?”

The Agriculture Committee Markup Vote and XRP Price Action

Recent price action has underscored XRP’s sensitivity to regulatory developments on Capitol Hill. XRP rallied from $1.8103 on December 31 to a January 6 high of $2.4151 after the Banking Committee announced its January 15 markup.

However, the token dropped to a January 25 low of $1.8113 after the delays to the Banking Committee and the Agriculture Committee’s markups. The token has since reclaimed $1.91 on optimism over the Senate eventually passing the Market Structure Bill. The passing of the Bill remains key to the bullish short- to medium-term price outlook for XRP.

XRP Price Forecast: Short-, Medium-, and Long-Term Targets

Robust demand for XRP-spot ETFs reaffirmed the positive short-term outlook (1-4 weeks), with a target price of $2.5. Additionally, expectations of the Senate passing the Market Structure Bill and increased XRP utility reinforce the bullish longer-term price projections:

• Medium-term (4-8 weeks): $3.0.
• Longer-term (8-12 weeks): $3.66.

Key Downside Risks to the Bullish XRP Outlook

Several factors could challenge the positive outlook. These include:

• The Bank of Japan signals multiple rate hikes to reach a higher neutral interest rate (potentially 1.5%-2.5%). A higher neutral rate would narrow US-Japan rate differentials more than expected. A sharply narrower rate differential could trigger an unwind of yen carry trades, as seen in mid-2024. An unwind of the yen carry trade would invalidate the bullish short-term outlook.
• A hawkish Fed Chair Powell and fading bets on an H1 2026 Fed rate cut.
• Further delays and/or partisan opposition to the Market Structure Bill.
• XRP-spot ETFs report outflows.

These scenarios would weigh on cryptos, sending XRP below $1.85 and signaling a bearish trend reversal.

Technical Analysis: Levels to Watch

XRP gained 0.50% on Tuesday, January 27, following the previous day’s 3.83% rally, closing at $1.9136. The token underperformed the broader crypto market cap, which advanced 1.32%.

Despite the gains, XRP remained below its 50-day and 200-day EMAs, indicating a bearish bias. However, the positive fundamentals continue to counter bearish technicals, reaffirming the bullish outlook.

Key technical levels to watch include:

• Support levels: $1.85, $1.75, and then $1.50.
• 50-day EMA resistance: $2.0194.
• 200-day EMA resistance: $2.2796.
• Resistance levels: $2.0, $2.5, $3.0, and $3.66.

On the daily chart, a breakout above $2.0 would bring the 50-day EMA into play. Significantly, a sustained move through the 50-day EMA would signal a near-term bullish trend reversal. A bullish trend reversal would enable the bulls to target $2.2. Furthermore, a break above $2.2 would pave the way toward the 200-day EMA.

A sustained move through the EMAs would reinforce the bullish short- to medium-term price targets.

Fundamental Events Driving Near-Term Price Action

Near-term price drivers include:

• XRP-spot ETF flow trends.
• US economic indicators and Fed Chair Powell’s press conference on Wednesday, January 28.
• US crypto-related legislative developments.
• The Bank of Japan’s neutral rate and policy stance.
• US President Trump’s tariff policies and geopolitical headlines.

Reclaiming $2 Remains Key for XRP’s Bullish Structure

Reclaiming $2 remains crucial for the short- to medium-term outlook. The positive fundamentals, as stated above, continue to offset bearish technicals, indicating a near-term rally. XRP’s recovery from December’s low of $1.7712 and January gains of 3.06% affirmed the bullish structure and short- to medium-term price targets.

A break above $2.0 would bring the upper trendline into play. A sustained move through the upper trendline would confirm the bullish trend reversal and validate the bullish structure, supporting the price targets:

• Medium-term (4-8 weeks): $3.0.
• Longer-term (8–12 weeks): target of $3.66.

In contrast, a sustained break below the lower trendline to sub-$1.85 levels would invalidate the bullish structure, signaling a bearish trend reversal.

XRP Outlook Hinges on Crypto Legislation, ETFs, and Central Banks

Looking ahead, Fed Chair Powell’s policy stance and the Agriculture Committee’s markup vote will be key for XRP’s near-term price outlook. Progressing the draft text would boost hopes that the Senate will pass the Bill, increasing demand for XRP.

However, tariff-related news and demand for XRP-spot ETFs will also influence near-term price trends.

Powell’s support for an H1 2026 rate cut and a lower BoJ neutral rate (potentially 1%-1.25%) would boost XRP demand. Strong inflows into US XRP-spot ETFs and the progress of the Market Structure Bill would reaffirm the constructive bias.

In summary, these factors support a medium-term (4–8 weeks) move to $3.0. The US Senate’s passing the Market Structure Bill would reaffirm the longer-term (8–12 weeks) price target of $3.66.

Beyond 12 weeks, these events are likely to drive XRP to its all-time high of $3.66 (Binance). A breakout above $3.66 would support a 6- to 12-month price target of $5.