2026-01-07 22:22:05

The recent market divergence pattern is indeed interesting. ETH short positions have been wiped out extensively, while XRP has surged forward by leveraging the momentum. This fragmented market trend is worth a deep dive.

Many are still debating whether to chase XRP, but what truly matters is the change in the underlying capital flow. The inflow of funds into the US spot XRP ETF has already surpassed $1 billion, with $48 million absorbed on January 5 alone. This is not the scale of retail scattered purchases but a genuine institutional capital entry signal.

Even more noteworthy is the change on the supply side. The amount of XRP available for trading on exchanges has fallen to multi-year lows, indicating a typical supply tightness. When large-scale capital enters and supply is limited, you can understand why this rally is so fierce. This is not a market movement driven by short-term speculation.

Ripple is also pushing forward with key initiatives—such as the application for a banking license and the Ripple USD stablecoin plan. These measures point in the same direction: gradually integrating XRP into the traditional financial system. For institutional investors, such policy-level positive signals are the most convincing. Things that can attract institutions to invest $1 billion are certainly not just market hype.

From a technical perspective, the current situation is quite interesting. Although some indicators show overbought characteristics, overbought conditions do not necessarily mean a top is in. The real focus should be on the sustainability of capital and the defense of key support levels—these two signals can truly reflect the possible future trend.

ETH0,54%

XRP0,52%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

24 Likes

Reward
24
9
Repost
Share

Comment

0/400

TokenTherapist

· 01-10 16:05

1 billion funds entering the market, exchange XRP inventory hitting bottom, this is the real fundamental story Institutions are not here for short-term trading, Ripple's banking license + stablecoin, this is about integrating into traditional finance ETH was slaughtered, XRP takes off, the market is so fragmented, whoever can seize the divergence wins Overbought does not mean the top is in, the key is whether funds can continue to follow and whether support levels can hold This wave of XRP doesn't look like retail speculation, with 48 million inflow into ETFs in a single day, it's really big institutions laying out Tight supply + large funds entering, no matter how you look at it, this combination doesn't seem like a decline is coming Policy favorable + fundamental improvement, no wonder institutions are willing to pour so much money in Now I'm actually curious how long this sustained performance can last, continuous funding is the true way to victory

View OriginalReply0

ProposalManiac

· 01-10 14:26

With billions flowing in combined with tight supply, this combination punch is indeed fierce. But the question is—how does Ripple's governance mechanism ensure that these inflowing funds truly promote substantive applications rather than becoming financial games? Institutional entry itself is just a signal; the key is whether the subsequent incentive-compatible design can hold up. The lessons of history are clear—no matter how good the fundamentals are, they can collapse if the checks and balances are poor. Overbought ≠ peak, that's not wrong, but don't overlook a detail—what the support level defense reflects is actually the stability of community consensus. Funds can be virtual, but confidence is real.

View OriginalReply0

HashBard

· 01-10 06:34

the supply squeeze narrative hits different when you actually zoom into exchange flows ngl... this feels less "retail fomo szn" and more "big money chess moves" vibes fr

Reply0

TokenomicsDetective

· 01-09 22:08

Institutions are entering with 1 billion dollars, this is no joke, and the supply side is so tight... To be honest, I'm a bit unsure. Wait, why is ETH still trapped? The divergence is too extreme. We need to keep an eye on the support levels. Overbought doesn't mean a top. Whether we can hold this wave is the key.

View OriginalReply0

DaisyUnicorn

· 01-07 22:51

Institutions are pouring real money into the market, and the supply side is locked up. This is the true reason behind XRP's fierce surge... Looking at the candlestick chart alone is not enough; you need to see who is buying and who is selling behind the scenes.

View OriginalReply0

GasFeeTherapist

· 01-07 22:42

Institutional entry is real, but the supply shortage is ridiculous. Isn't this just the classic leek-cutting tactic? XRP's recent surge is mainly FOMO rallying; good market sentiment doesn't mean it won't crash later. A billion sounds impressive, but what proportion does it really represent in the entire market? Don't be fooled by the numbers. Support levels? Bro, that's just betting on the continuation of funds. What if institutions run away? Stablecoin plans have been talked about countless times; real implementation still needs to wait. Don't be too optimistic.

View OriginalReply0

ReverseFOMOguy

· 01-07 22:40

Institutions pouring 1 billion is no joke; this wave really has some substance. --- ETH has been broken through, and XRP's momentum is also extremely fierce. --- Tight supply combined with institutional entry; this combination is truly the killer move. --- I'm telling you, things that can move institutions tend to make retail investors chase high, so be cautious. --- Is Ripple's licensing move reliable? That’s probably the key to determining the future. --- 1.8 billion flowed in in one day, reaching 48 million; this data doesn't lie, funds are indeed moving. --- Overbought ≠ peak; I agree with this statement. The key is whether the funds have sustained momentum. --- The XRP amount on exchanges has been at a multi-year low, which is indeed a rare signal. --- If traditional financial systems truly accept XRP, it would be more than just speculation. --- Now, I'm more worried about when the peak will occur; it's more realistic than obsessing over whether to chase.

View OriginalReply0

consensus_failure

· 01-07 22:37

Institutions are really throwing money around, this time is different XRP is now a perfect storm of tight supply and institutional entry, wake up everyone The key is the sustainability of funds; overbought doesn't mean it's over 1 billion USD inflow, this is no longer a retail game I believe Ripple's move to connect with traditional finance is serious, not just talk As long as the support level holds, it will continue to rise; only when it breaks should we panic By the way, ETH short positions have been pretty badly educated; the market is just so fragmented

View OriginalReply0

LiquidationTherapist

· 01-07 22:31

Institutions investing 1 billion is no joke. With such tight supply, how can XRP still fall? How is that possible? This wave of XRP is purely a game of capital, retail investors are still debating whether to chase or not, but they’ve already entered the market. I predicted early on that the ETH short positions would be wiped out. Now, watching XRP’s support level is the key; whether it breaks or not will determine if the rally continues or if there’s a pullback. Tight supply combined with institutional entry—this combo punch is unmatched. But we still need to see how long the funds can sustain it. If the banking license truly materializes, integrating XRP into the traditional financial system will rewrite the rules of the game. The current rally might just be the prelude. Overbought does not mean the top has been reached. That’s correct. The key is to watch for sustainability. Technicals look good, but fundamentals are still king. Those chasing XRP at this point are probably making a killing. I just want to see who will buy the top.

View OriginalReply0