XRP breaks $2.12 as shrinking exchange supply lead to price squeeze higher

2026-01-05 07:20:09

Source: CryptoNewsNet Original Title: XRP breaks $2.12 as shrinking exchange supply lead to price squeeze higher Original Link: https://cryptonews.net/news/analytics/32225519/ XRP pushed above $2.12 as buyers forced a break through a stubborn resistance area on above-average volume, with the move landing at a time when exchange balances are sitting near multi-year lows and U.S.-listed spot ETFs continue to absorb supply — a mix that traders often read as supportive for follow-through if the breakout holds.

Institutional Demand Remains Constructive

Institutional demand for regulated XRP exposure has stayed constructive, with U.S.-listed spot XRP ETFs adding $13.59 million in fresh inflows earlier this week. That flow profile has mattered because it’s been steady rather than headline-driven, helping absorb supply during periods when spot price action has been choppy.

At the same time, exchange balances have continued to trend lower, a dynamic traders often frame as a “supply tightness” signal — not a guarantee of upside, but a condition that can amplify rallies when demand picks up. XRP’s market cap rose to about $121.7 billion on the session, underscoring the scale of participation behind the move.

XRP-4,6%

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