Ripple (XRP) has certainly not disappointed the bulls today. So far, the price has fluctuated between $2.14 and $2.35, with a single-day increase of over 11%. What is driving this rally behind the scenes? Let's take a look.

The most direct signal comes from technical analysis. On the 3-hour chart of XRP against Bitcoin, the 50-day moving average has just completed a bullish crossover above the 200-day moving average—that's the legendary golden cross. For many technical traders, this is a rare bullish signal since the beginning of 2026, and thus momentum traders have also followed suit.

Next are institutional actions. The XRP spot ETF listed in the US saw a significant net inflow of approximately $13.59 million this week. Don't underestimate this number; institutional entry often indicates a shift in market sentiment, which also boosts retail confidence, creating a positive feedback loop.

Additionally, analyst voices are also contributing. Major institutions like Standard Chartered Bank recently released forecasts setting XRP's target price at $8 in 2026. This long-term bullish outlook has been amplified by the market at this time of year, naturally attracting buying interest.

Finally, don't forget the overall market environment. The sentiment index of the cryptocurrency market has now rebounded to a neutral level. Investors, at the start of the new year, are busy readjusting their asset allocations, with risk appetite clearly warming up. All these factors combined have shaped this rally.