XRP Defies Bearish Breakdown Predictions as $1.77 Support Holds and Exchange Flow Reversal Sparks 30% Rally

Core Viewpoint - The XRP price experienced a significant rebound after holding the $1.77 support level, invalidating bearish predictions and surging above $2, driven by strong buyer conviction and institutional demand through ETFs [4][19]. Price Action and Market Sentiment - XRP dropped to $1.85 on December 29, 2025, breaking the key support at $1.88, with a volume spike of 77% above normal, indicating strong selling pressure [3][6]. - Despite bearish sentiment and predictions of a drop to $1.50, the price held at $1.77, leading to a rapid resurgence above $2 [5][19]. Exchange Flows and Institutional Demand - Exchange inflows peaked at 116 million XRP per day in late December, but this was a temporary spike related to year-end trading activities [10][11]. - Institutional demand through XRP ETFs saw inflows of $483 million in December, maintaining positive inflows for 43 consecutive trading days, which helped absorb selling pressure [7][19]. Technical Indicators and Future Predictions - The breakout above $2.12 on January 5 occurred with a volume of 47.6% above average, indicating a shift from bearish to bullish sentiment [12][15]. - The next major resistance level is at $2.50-$2.60, with a potential target of $3.00 if this level is broken [15][20]. - The most likely scenario is consolidation between $2.30 and $2.70 through Q1 2026, with ETF inflows expected to remain moderate [16]. Key Levels to Watch - Investors should monitor the $2.50 resistance and the $2.12 support level, as breaking these levels will determine the future price trajectory of XRP [20].