XRP surged to almost $2.40 on Tuesday, continuing its rally from early 2026 as traders highlighted significant institutional volumes and a decreasing number of tokens available on exchanges.
The token skyrocketed by as much as 11% within 24 hours to approximately $2.38, breaking through a resistance level that had stifled growth for weeks. This surge occurred amid one of XRP’s most substantial volume spikes since mid-December, according to CoinDesk market data.
A contributing factor is the flow. Spot XRP ETFs in the U.S. registered $48 million in inflows on Monday, marking a continuation of positive momentum for these products, which haven’t recorded a single day of outflows since their launch on Nov. 13.
Several of these products achieved their highest single-day trading volumes on Monday, propelling total inflows over the $1 billion threshold in under two months.
On-chain data indicates that XRP held on exchanges has dwindled to multi-year lows, suggesting fewer tokens are available for sale during price increases. Traders often interpret this as a scenario where even slight demand can drive prices up more rapidly than usual.
This rally is also fueled by a shift in general market sentiment that began late last week.
Traders have been embracing the notion that the U.S. regulatory environment is becoming more favorable, especially following SEC Commissioner Caroline Crenshaw’s departure and ongoing discussions surrounding market structure legislation expected in January.
XRP, which has faced years of legal uncertainty, has emerged as one of the most notable beneficiaries of this shift in sentiment.
Currently, the surge is also reinforcing itself. Breakouts beyond well-monitored levels typically trigger follow-up buying from traders awaiting confirmation, particularly in a market where Bitcoin remains stable and speculative interest shifts towards large-cap alternatives.
The crucial question is whether XRP can maintain its position above the previous resistance zone of $2.28 to $2.32. If successful, the market may begin to anticipate higher prices instead of viewing the rally as just another brief spike.
