Why XRP Is Outperforming Bitcoin and Ethereum in 2026

XRP has emerged as one of the hottest crypto trades of the year, even outperforming giant Bitcoin & Ethereum in performance and becoming the 3rd-largest cryptocurrency by market cap.

Since the start of the year, XRP has climbed more than 20%, briefly trading near $2.40. What stands out is not just the price move, but the reason behind it.

XRP as a “Less Crowded Trade”

Speaking on CNBC, journalist Mackenzie Sagalos explained that XRP benefited from a shift in investor mindset during late 2025. She noted that many traders treated XRP as a “buy-the-dip” opportunity rather than a momentum trade.

With Bitcoin becoming more stable and crowded, traders were clearly hunting for assets with higher upside potential, and XRP fit that profile well.

This strategy paid off quickly. In early January, XRP jumped as new buyers entered, while selling stayed low. Institutional interest also played a key role, with steady money flowing into XRP ETFs during a quiet period.

Since the launch of the XRP ETF, total inflows have reached around $1.62 billion, showing sustained confidence from large investors.

Since early January, XRP has been forming higher lows, showing that buyers are entering earlier on each dip. As long as the price stays above the $2.20 zone, the structure remains stable, with room for a move back toward $2.60 – $3 if momentum returns.

Meanwhile, the RSI has cooled to 45, which often acts as a healthy reset during ongoing uptrends.

Will XRP Hit $5 by the End of 2026?

With steady ETF inflows and supportive fundamentals, XRP has the potential to extend its current rally toward the $5 level later this year.

Although short-term volatility is expected, the recent pullback appears to be a healthy pause within a broader uptrend, not a full trend reversal.