XRP pushed above $2.12, breaking through a key resistance zone on above-average trading volume, as tightening exchange supply and steady institutional inflows reinforced the breakout setup.

The move comes at a time when XRP balances on exchanges are sitting near multi-year lows, a condition traders often interpret as supply tightness that can amplify price moves once demand accelerates — particularly when paired with sustained ETF buying.

Institutional demand continues to absorb supply

Institutional appetite for regulated XRP exposure has remained constructive. U.S.-listed spot XRP ETFs recorded $13.59 million in net inflows earlier this week, extending a steady accumulation trend rather than a one-off, headline-driven spike.

That consistency has mattered for price structure. ETF inflows have helped absorb spot supply during periods of choppy price action, reducing sell-side pressure as XRP tested overhead resistance.

XRP’s market capitalization rose to approximately $121.7 billion during the session, underscoring the scale of participation behind the breakout.

On the network side, XRP Ledger activity has improved, with daily transaction counts climbing back toward the 1 million transactions per day level — a signal that demand is not purely speculative, even if near-term price action remains the dominant driver.

Technical analysis: Breakout confirmed, consolidation underway

XRP advanced 2.04% to $2.12, decisively clearing the $2.10–$2.12 resistance band that had capped multiple rebound attempts in recent sessions.

The breakout was accompanied by volume running 47.6% above the seven-day average, an important confirmation signal. Resistance breaks that occur on light participation often fail quickly; elevated volume improves the odds of follow-through.

After the initial surge, XRP shifted into a tight consolidation range between $2.128 and $2.152, with repeated tests of $2.128 holding as short-term support. This behavior — consolidating above former resistance rather than slipping back into the prior range — keeps the near-term structure constructive.

Volume has tapered following the surge, suggesting the market is pausing while traders assess whether broader risk sentiment or a fresh catalyst brings in the next wave of buyers.

Key levels to watch

Immediate support: $2.128

Near-term resistance: $2.15–$2.16

Upside extension zone: $2.20–$2.28

Downside risk if breakout fails: $2.06, then the lower end of the prior range

A clean push through $2.15–$2.16 would typically bring $2.20 into play relatively quickly, where previous sell-side interest has emerged. Conversely, a sustained loss of $2.128 would increase the risk of a pullback toward the lower boundary of the broader range.