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The fresh inflows arrive at a technically sensitive moment for XRP price action. On the XRP/USD eight-hour chart, price has pulled back to retest the 200 exponential moving average, a level widely watched by market participants as a trend validation zone.
One market watcher notes that a firm bullish response from this area is critical to invalidate a deeper bearish continuation. A successful push to a new local high, as outlined in recent chart projections, would be a strong bullish confirmation of fresh momentum.
However, derivatives data show that XRP has recently undergone aggressive liquidity clearing on both sides of the market.
According to CryptoQuant, XRP derivatives experienced a double liquidation event between January 5 and January 6. The first wave targeted short positions, with total short liquidations exceeding $4.4 million, and Binance accounted for roughly $3.09 million of that figure.
 
Shortly after, price pulled back from the $2.40 region and triggered a second liquidation wave, this time against long positions. Roughly $4 million in long liquidations followed, including about $1 million on Binance, before an additional spike of approximately $1.5 million.
Meanwhile, liquidation heatmaps at the 15-minute and 1-hour timeframes show that short clusters were largely cleared before the price rotated against late long entrants.
This sequence highlights a classic liquidity sweep that traps overleveraged traders on both sides. With short pressure largely exhausted and institutional ETF flows turning positive, attention now shifts to whether spot demand and technical support can sustain a bullish continuation.
If buyers defend the 200 EMA and reclaim higher levels, XRP could transition from consolidation back into trend expansion.