XRP rallied roughly 11% over 24 hours to approach $2.38 on Tuesday, shattering a weeks-long resistance band. The move came on one of the token's strongest volume bursts since mid-December, according to CoinDesk market data.
ETF Inflows Surge, Exchange Supply Shrinks
U.S. spot XRP ETFs recorded $48 million in net inflows Monday, extending an unbroken streak of positive flows since their Nov. 13 launch. Several products posted their highest single-day trading volumes that day, driving cumulative inflows past $1 billion in under two months.
On-chain data shows XRP held on exchanges has dropped to multi-year lows. Traders interpret this shrinking ready-to-sell inventory as a condition where even modest demand can move prices faster than normal.
Regulatory Tailwinds and Rotation Play
The rally builds on a sentiment shift that began late last week. Market participants are pricing in a more constructive U.S. regulatory backdrop, particularly after SEC Commissioner Caroline Crenshaw's exit and continued discussion around market-structure legislation expected in January. XRP, long weighed down by legal uncertainty, stands out as a clear beneficiary of the mood change.
With bitcoin steady, speculative attention is rotating toward large-cap altcoins. The breakout above a well-watched resistance zone triggered follow-through buying from traders waiting for confirmation, creating a self-reinforcing upswing. The key test lies ahead: can XRP hold the $2.28-$2.32 area as support, turning the former ceiling into a floor? If so, the market may begin targeting higher levels rather than treating this as just another spike.