XRP jumped to nearly $2.40 on Tuesday, extending a rally seen in early 2026, as traders pointed to heavy institutional trading volume and a tightening of the token pool available on exchanges.
The coin rose 11% in 24 hours to around $2.38, breaking a resistance band that had limited gains for weeks. The move represents one of XRP’s strongest volume bursts since mid-December, CoinDesk market data shows.
One reason is traffic. The U.S. spot XRP ETF recorded $48 million in inflows on Monday, continuing a green trend for the product, which has not seen a single-day outflow since its launch on November 13.
Many of these products hit their largest single-day trading volumes on Monday, and cumulative capital inflows exceeded the $1 billion mark in less than two months.
On-chain data shows XRP held on exchanges has fallen to multi-year lows, suggesting fewer tokens are sitting idle and ready to sell off on dips. Traders often view this as a mechanism whereby even modest demand can push prices higher faster than usual.
The rally also builds on a shift in overall market sentiment that began late last week.
Traders have been leaning toward the view that the U.S. regulatory environment is becoming more constructive, especially after SEC Commissioner Caroline Crenshaw stepped aside and continued discussions on market structure legislation expected to be acted upon in January.
XRP, which has been trading under a cloud of legal uncertainty for years, is one of the clearest beneficiaries of this change in sentiment.
Currently, this initiative is also working. Breaks above closely watched levels often trigger follow-on buying from traders awaiting confirmation, especially in markets where Bitcoin is stable and speculative attention turns to broader market alternatives.
The key question is whether XRP can hold above the previous resistance zone around $2.28 to $2.32. If it does, the market may start to look higher instead of viewing this rally as another rapid rise.
