XRP surged to near $2.40 on Tuesday, extending its early 2026 rally as traders pointed to big institutional volumes and a tightening of the pool of tokens available on exchanges.
The token rose 11% over 24 hours to around $2.38, breaking through a resistance band that had capped gains for weeks. The move follows one of XRP’s largest volume increases since mid-December, according to market data from CoinDesk.
One reason is flow. Spot
Several products recorded their largest single-day trading volumes on Monday, pushing cumulative inflows past the $1 billion mark in less than two months.
On-chain data shows that XRP held on exchanges has fallen to its lowest level in several years, a sign that fewer tokens are sitting idle and ready to be sold during rallies. Traders often read this as a setup where even modest demand can cause the price to move faster than usual.
The rally also builds on a shift in overall market sentiment that began late last week.
Traders are leaning toward the view that the U.S. regulatory environment is becoming more constructive, particularly following the departure of SEC Commissioner Caroline Crenshaw and continued discussions over market structure legislation expected to pass in January.
XRP, which has spent years trading amid legal uncertainty, has been a major beneficiary of this change in mood.
For the moment, this approach also feeds on itself. Breakouts at well-watched levels tend to trigger subsequent buying by traders who have been waiting for confirmation, especially in a market where bitcoin is stable and speculative attention turns to large-cap alternative assets.
The key question is whether XRP can hold above the old resistance zone between $2.28 and $2.32. If so, the market could start looking upwards rather than viewing the rally as another quick spike.
