A surge in daily transactions (1.45m daily users in january 2026) to an almost six-month high, coupled with eight-year lows in exchange reserves and increasing institutional inflows (xrp etfs), historically precedes sharp rallies and explosive price moves.
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Despite current market consolidation and profit-taking causing a temporary price retracement, the significant surge in on-chain activity and demand, combined with low exchange reserves and institutional interest, historically leads to explosive price movements and significant rallies after a period of lagging.
Historical data suggests that while price may lag behind on-chain progress for several weeks, the subsequent 'explosive price moves' or 'sharp rallies' tend to occur within a relatively short timeframe once the breakout begins.
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing How Our News is Made Strict editorial policy that focuses on accuracy, relevance, and impartiality Ad discliamer Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. Recent reports indicate that XRP has reached an almost six-month high in daily transactions, marking a pivotal moment for the cryptocurrency as it exhibits increasing adoption across both payment systems and decentralized finance (DeFi) applications. For January 2026 alone, the XRP Ledger recorded 1.45 million daily transactions, following a steady upward trend in network usage that began in late 2025, coinciding with the introduction of new payment corridors through Ripple’s On-Demand Liquidity platform and the integration of stablecoins such as RLUSD. Gaps Between XRP Demand And Price Market expert Sam Daodu highlighted in a recent report for 24/7 Wall St. that historical trends suggest that gaps between rising demand and stagnant prices often precede sharp rallies. With exchange reserves at eight-year lows and increasing institutional inflows seen with XRP exchange-traded funds (ETFs), the current situation indicates that the altcoin may be quietly gearing up for its next breakout. Related Reading XRP Will Skyrocket Beyond $18: Analyst Suggests 800% Growth Potential In 2026 1 day ago Despite a slight rebound to $2.42 on January 6, which represented a nearly two-month high for the token, its price has since retraced to approximately $2.048 at the time of writing. This decline occurred despite the transaction surge, suggesting that XRP has yet to capitalize on its increased usage. The daily chart shows XRP’s price retracing toward the key $2 support. Source: XRPUSDT on TradingView.com Daodu noted that the discrepancy between XRP’s price and its on-chain activity isn’t unusual. He asserts that such gaps between usage and price have often been precursors to significant price movements, while also pointing out several factors contributing to the current delay in price reaction. Market-wide consolidation is one of the key reasons, as Bitcoin (BTC) and Ethereum (ETH) traded sideways in early 2026, dampening momentum for altcoins like XRP. In addition, profit-taking pressure has emerged following XRP’s July 2025 rally up to $3.65. Many short-term holders have cashed out, creating strong resistance levels in the $2.20 to $2.50 range. Until new catalysts arise, Daodu claims XRP may remain confined to this range without breaking out. Is A Major Price Breakout Ahead? Looking forward, Daodu posits that XRP has a historical tendency to lag behind its on-chain progress before initiating explosive price moves . In both 2017 and 2020, spikes in transaction volume and wallet activity preceded significant rallies for the token’s price by several weeks. Related Reading Bitcoin And Crypto ETFs Set To Attract $130 Billion-Plus Inflows This Year, JPMorgan Predicts 1 day ago For instance, in the third quarter of 2020, XRP’s daily transactions grew by over 40% in just two months, while the price remained flat at around $0.25, only to surge to over $0.70 within weeks in November. A similar scenario unfolded in late 2017, where heightened usage metrics preceded a jump in XRP’s price from $0.30 to $3.30 by early January 2018. This suggests that the current surge in on-chain transactions could be a leading indicator of a delayed price breakout for XRP. Featured image from DALL-E, chart from TradingView.com