Short Description: Despite a 4% price drop this month, XRP shows hidden strength as millionaire wallets surge and ETF inflows grow, signaling potential long-term accumulation.
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XRP has started the new year on a negative note, with its price falling about 4% in recent weeks, unable to decisively reclaim its 50-day moving average. On the surface, the payments-focused cryptocurrency appears mired in a short-term downtrend, struggling to break past the psychologically significant $2 level. However, a deeper look at on-chain fundamentals reveals a starkly different and more bullish narrative developing beneath the charts, suggesting sophisticated investors may be positioning for the longer haul.
According to analytics firm Santiment, the number of “millionaire wallets”—addresses holding at least 1 million XRP—has increased for the first time in four months, rising by 42 this January to a total of 2,016. This reversal marks a potential shift in sentiment among large holders, or “whales.” Simultaneously, U.S.-listed spot XRP ETFs have continued to attract significant capital, registering a net inflow of $91.72 million this month. This sustained appetite from institutional investment products stands in sharp contrast to the outflows seen in competing assets like Bitcoin ETFs, highlighting a unique and growing confidence in XRP’s underlying utility within the cross-border payments ecosystem.
This divergence—where price action remains weak but on-chain accumulation and ETF demand are strong—often indicates a phase of quiet accumulation rather than speculative mania. Historically in crypto markets, such a setup can precede periods of consolidation that eventually give way to sharper price movements, though the timing is notoriously variable. For now, XRP’s trajectory seems caught between these improving long-term fundamentals and broader short-term risk aversion in the digital asset sector. A sustained breakout may ultimately require a pickup in momentum across the wider crypto market, led by majors like Bitcoin and Ethereum.
Short Summary: While XRP’s price faces short-term pressure, key bullish signals are emerging. A surge in millionaire wallets and steady ETF inflows point to strategic, long-term accumulation by large investors. This fundamental strength, centered on XRP’s role in cross-border payments, suggests the current weakness may be a consolidation phase setting the stage for a future rally, contingent on broader crypto market momentum.
