XRP slips 5% as CNBC terms it 'hottest trade' of 2026 over bitcoin and ether

XRP slipped to $2.18 after failing at $2.28, tempering the token’s early-2026 run that’s been strong enough to earn the “new crypto darling” label in a CNBC segment — and reminding traders that even crowded narratives still have to clear supply at major resistance.

News background

• XRP’s strong start to 2026 has pushed it back into the spotlight, with CNBC this week calling the token the “new cryptocurrency darling” after it outperformed bitcoin and ether in the first week of the year.
• The framing has helped reinforce the idea that the most crowded crypto trades may be shifting, with XRP drawing attention as a relatively under-owned large-cap alternative as bitcoin holds range-bound and ether struggles to regain momentum.
• The move has also been supported by steady institutional demand through U.S.-listed spot XRP ETFs.
• Market data trackers show the products have continued to take in net inflows into early January, extending a streak that has stood out against stop-start flows seen in bitcoin and ether ETFs.
• The same period has seen a pickup in bullish social sentiment and improving network activity, while exchange reserves have drifted lower — a dynamic that traders often read as reduced immediately available supply.
• Still, the “darling” label comes with a familiar risk for momentum trades: inflows and sentiment can turn quickly if the broader market weakens or if price begins to stall at major resistance.
• That tension is showing up in the tape now, with XRP failing to hold above key levels even as the narrative remains supportive.

Technical analysis

XRP fell 4.4% over the 24-hour period ending Jan. 8, sliding from $2.28 to $2.18 after repeated failures at the $2.28 area turned into a decisive selloff. The key inflection point came around 15:00 UTC on Jan. 7, when volume spiked to 133.8 million — roughly 121% above the 24-hour average — as price rolled over and broke through successive supports.

The tape reads like selling into rallies, not a low-liquidity drift. Volume stayed elevated into the decline, and the session structure printed a clean sequence of lower highs and lower lows as XRP slid toward $2.15, where dip demand finally showed up.

On the 60-minute chart, the bounce that followed looked constructive but still early. XRP based near $2.173–$2.174 (the session low area), printed a higher low, and recovered back into $2.18–$2.19 with improving participation. That puts the market in a familiar setup: short-term rebound momentum inside a broader structure that still has to reclaim overhead supply.

The biggest level is straightforward: $2.28 remains the line. Until XRP can retake that zone and hold it, rallies are likely to keep running into real offers. Conversely, as long as $2.15 holds, the pullback can still be interpreted as digestion within a strong early-year trend rather than a broader reversal.

Price action summary

• XRP slid from $2.28 to $2.18, with the steepest leg lower triggered by a 121% above-average volume spike
• The decline pushed price to the $2.15 demand area, where bids showed up and prevented further extension
• A short-term base formed around $2.173–$2.174, followed by a rebound back toward $2.19
• The session remains defined by overhead supply near $2.20–$2.28 and demand around $2.15

What traders should know

This is a narrative vs tape market.

The narrative remains supportive: ETF flows, bullish sentiment, and declining exchange reserves keep the bigger-picture case intact. But the tape is sending a clear message: $2.28 is still a distribution zone, and the market is not yet willing to pay through it without stronger follow-through.

The levels are clean:

• If XRP can reclaim $2.20 and then retake $2.28, momentum traders will treat it as a reset higher, opening a path back into the next supply zone around $2.30–$2.32 and potentially the upper band of the broader range.
• If $2.15 fails, the market likely rotates into the next demand pocket around $2.10, with $2.00 back in view as a psychological magnet if risk appetite softens across majors.
• The near-term tell is whether rebounds continue to happen on rising volume (real demand) or whether volume fades into resistance again (rally-selling).

Bottom line: XRP is still leading the year-to-date scoreboard, but this session shows that outperformance doesn’t remove resistance — it just shifts where the market tests conviction.