Descending Triangle Tightens As ETF Inflows Fail To Lift Price

• XRP consolidates at $2.06, trapped between the 20/50 EMA cluster and descending triangle resistance as momentum stalls.
• ETF inflows continue with $1.12 million on January 16, extending the streak to 11 consecutive days of institutional accumulation.
• Derivatives data shows $5.82 million in long liquidations over 24 hours while long/short ratio tilts to 0.92, reflecting cautious positioning.

XRP price today trades near $2.06 as a descending triangle pattern compresses price action into a tightening range. The setup places buyers at a critical decision point, with triangle support at $2.04 holding while overhead resistance continues to fall.

Triangle Pattern Squeezes Price Action

The hourly chart shows a textbook descending triangle forming since January 14. Price has carved a series of lower highs from $2.19 down to $2.08, while horizontal support holds firm at $2.04.

This pattern typically resolves with a breakdown, but the direction depends on which level breaks first. A close below $2.04 confirms the bearish bias and projects a measured move toward $1.90. A break above the descending trendline near $2.10 would invalidate the pattern and shift momentum bullish.

RSI sits at 48.95, reflecting the indecision. The indicator has oscillated between 45 and 55 for the past three days without committing to either direction. Parabolic SAR at $2.0403 aligns with triangle support, making this level the short-term line in the sand.

ETF Inflows Persist But Pace Slows

Institutional flows remain positive despite the stalling price action. According to SoSoValue, XRP spot ETFs recorded $1.12 million in net inflows on January 16, extending the streak to 11 consecutive days of accumulation.

The pace has slowed from earlier this month. January 15 saw $17.06 million in inflows, while January 14 brought $10.63 million. The drop to $1.12 million suggests that institutional buyers are stepping back as price consolidates rather than aggressively adding positions.

Total ETF assets under management now stand at $1.52 billion, with cumulative net inflows reaching $1.28 billion since launch. The steady accumulation provides a floor under price but has not been enough to push XRP through overhead resistance.

Longs Get Flushed As Shorts Build

Derivatives positioning reflects the cautious mood. Open interest rose 1.08% to $3.93 billion, but trading volume dropped 27.43% to $3.09 billion. The divergence suggests that traders are holding positions but not opening new ones with conviction.

The long/short ratio sits at 0.92, indicating a slight tilt toward short positioning. Over the past 24 hours, $5.82 million in long liquidations hit the market compared to just $320,000 in shorts. That imbalance shows that leveraged bulls continue to get caught on the wrong side of the range.

Top trader positioning on Binance tells a different story, with a 3.09 long/short ratio among larger accounts. This divergence between retail and institutional positioning often precedes sharp moves as one side capitulates.

Daily Structure Hangs At The EMA Cluster

On the daily timeframe, XRP sits directly at the 20 and 50-day EMA cluster between $2.06 and $2.08. This zone has acted as a pivot since December, with price oscillating above and below without establishing a clear trend.

Key levels now:

• Immediate resistance: $2.08 (50 EMA)
• Major resistance: $2.20 (100 EMA)
• Trend resistance: $2.32 (200 EMA)
• Triangle support: $2.04
• Supertrend support: $1.9555
• Demand zone: $1.80

The Supertrend indicator remains bullish at $1.9555, suggesting the broader recovery structure holds as long as price stays above this level. However, the descending trendline from the October high near $3.40 continues to cap rallies, creating a compression zone that must resolve soon.

Outlook: Will XRP Break Down Or Up?

The triangle pattern demands resolution. Price cannot compress indefinitely between $2.04 and falling resistance. The next 48 to 72 hours will likely determine direction.

• Bullish case: A close above $2.10 breaks the descending trendline and targets $2.20. Clearing the 100 EMA with volume confirms trend resumption toward $2.50.
• Bearish case: A daily close below $2.04 confirms the triangle breakdown and targets $1.95 Supertrend support. Losing $1.95 opens the demand zone at $1.80.

XRP sits at an inflection point. ETF flows provide a bid, but slowing momentum and long liquidations suggest buyers need a catalyst to break the stalemate.