XRP’s on-chain data reveal institutional-grade liquidity entering the market alongside rising DEX activity and strong buying pressure.
Ripple (XRP) is showing signs of recovery in market structure in early January as broader crypto conditions improved. The crypto asset posted more than 15% in monthly gains following a much-needed respite.
According to a recent analysis by CryptoQuant, the latest move could be a possible turning point, supported by both technical indicators and on-chain data pointing to a clear increase in network activity and strength.
Signs of a Major Breakout
In its latest analysis, CryptoQuant found that the XRP Ledger’s infrastructure has expanded significantly, which means that the network is increasingly prepared to support a steady price move. One of the important findings was a sharp rise in liquidity on the XRPL decentralized exchange, where total liquidity climbed to $173 billion.
This increase stood out because liquidity typically declines during price pullbacks, but instead continued to grow, which is indicative of fresh capital entering the market. The data suggests that market makers and large liquidity providers are actively positioning for either a major volatility event or a longer-term trend change.
Moreover, larger and more frequent liquidity spikes have been observed since December 10, 2025. These patterns point to the entry of institutional-grade participants, which makes it easier for large traders to execute sizeable orders without causing sharp price swings.
The increase in liquidity has been matched by rising activity, as XRPL DEX transactions reached 890,268, which shows that the available liquidity is being actively used rather than remaining idle. This growth in usage indicates real demand across the network.
On the trading side, CryptoQuant reported that current price action is being driven by stronger buying pressure and reduced selling. The Taker Buy Ratio moved above 0.5, a level that points to buyers being in control of market activity. In addition, XRP recently broke out from a falling wedge pattern, following the $5.8 million in short liquidations. These liquidations forced traders to buy back positions, adding momentum that helped the crypto asset hold above the $2.30 level.
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Institutional Appetite for Ripple
Further evidence of institutional demand comes from steady interest in regulated XRP exposure. Data compiled by SoSoValue revealed that US-listed spot XRP ETFs added $46.10 million in fresh inflows on January 5th.
It is important to note that these investment vehicles have posted inflows despite earlier choppy price action.
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