XRP Breaks $2.12 as Tight Supply and ETF Demand Fuel Price Momentum

XRP moved decisively higher, pushing past the $2.12 level as buyers forced a breakout through a long standing resistance zone on elevated trading volume. The move comes at a time when XRP supply on exchanges has dropped to multi year lows, a condition that can amplify price gains when demand strengthens.

Market participants point to sustained institutional interest as a key driver. U.S.-listed spot XRP exchange traded funds have continued to post consistent inflows, adding fresh capital even as broader crypto markets showed uneven momentum. This steady absorption of supply has helped offset selling pressure during recent consolidation phases.

Exchange data shows XRP balances trending lower, a signal traders often interpret as reduced near term selling availability. While not a guarantee of further upside, tight supply can accelerate price moves once resistance levels give way. XRP’s market capitalization rose to roughly $122 billion during the session, reflecting broad participation behind the advance.

On-chain indicators also show improving activity. Transaction counts on the XRP Ledger have been climbing toward one million per day, suggesting network usage is recovering alongside price strength rather than lagging behind it.

From a technical perspective, XRP gained just over 2 percent on the day, clearing the $2.10 to $2.12 range that had capped previous rebound attempts. Trading volume ran well above its recent average, a factor often viewed as confirmation that the breakout has conviction. Following the surge, price action settled into a narrow consolidation band above former resistance, with buyers defending the $2.13 area as short term support.

Analysts note that holding above this level keeps the structure constructive. A sustained push higher could bring the $2.20 zone into focus, while a failure to maintain support risks a return toward the lower end of the recent range. With ETF inflows remaining steady and available supply tightening, traders are watching closely to see whether institutional demand continues to translate into broader price follow through.