XRP Breaks Above $2.12 as ETF Inflows and Supply Tightness Support Bullish Momentum

XRP price pushed decisively above the $2.12 level, signaling a technical breakout that traders have been watching closely after weeks of capped upside. The move came on above-average trading volume, reinforcing the credibility of the breakout and suggesting buyers were willing to commit capital rather than chase a thin, short-lived spike. XRP gained just over 2% on the session, outperforming the broader crypto market and lifting its market capitalization to roughly $121.7 billion.

One of the key drivers behind the move is the ongoing strength in institutional demand. U.S.-listed spot XRP ETFs recorded approximately $13.59 million in net inflows earlier this week. While not a headline-grabbing surge, the consistency of these ETF inflows has been notable. Steady demand from regulated investment vehicles has helped absorb available supply during periods of sideways or choppy price action, creating a more supportive backdrop for breakouts when momentum finally arrives.

At the same time, XRP exchange balances remain near multi-year lows. Traders often interpret declining exchange balances as a sign of tightening supply, since fewer tokens are readily available for immediate selling. While this dynamic does not guarantee higher prices on its own, it can amplify rallies once buying pressure increases, especially during technical breakouts where stop orders and momentum strategies tend to cluster.

On-chain data also adds a constructive layer to the narrative. XRP Ledger transaction counts have been recovering, moving back toward the one-million daily transaction level. This improvement suggests that network usage is picking up, helping counter the argument that the rally is driven purely by speculative positioning.

From a technical perspective, XRP broke through the $2.10–$2.12 resistance zone with volume running nearly 48% above the seven-day average. After the initial surge, price consolidated in a narrow band between roughly $2.128 and $2.152, holding above former resistance. That behavior is typically seen as bullish, as it indicates acceptance at higher levels rather than immediate rejection.

The key level to watch remains $2.128. Holding above it keeps the breakout structure intact and puts $2.15–$2.16 back in focus, with a potential extension toward $2.20 if buying interest returns. A loss of that support, however, could pull XRP back toward the prior range near $2.06. Overall, ETF inflows, shrinking exchange supply, and improving technical structure have aligned to give XRP a stronger case for follow-through if support continues to hold.