XRP Breaks $2.40 Barrier on Institutional Surge and Supply Squeeze
XRP has staged a powerful breakout in early 2026, rallying nearly 12% to breach the critical $2.40 resistance level. This surge, fueled by record institutional inflows and a tightening supply landscape, signals a potential major bullish phase for the digital asset. The momentum is underpinned by fundamental shifts in market structure, suggesting this may be more than a short-term rally. The catalyst for this move was a record $48 million in net inflows into US spot XRP ETFs on Monday, marking the strongest single-day performance since their launch and pushing cumulative inflows past the $1 billion milestone. This substantial institutional demand coincides with a notable decline in XRP reserves on centralized exchanges, indicating a supply squeeze as tokens move into long-term custody or ETF holdings. The token peaked at $2.38 during the session, overcoming a weeks-long consolidation zone on one of its highest trading volume surges since mid-December. From a technical perspective, breaking the $2.40 resistance is a significant development. This level had acted as a ceiling for several weeks, and a decisive close above it could open the path toward higher targets. The combination of high volume and a clear breakout suggests strong conviction behind the move. Fundamentally, the record ETF inflows demonstrate growing institutional confidence in XRP's regulatory clarity and long-term value proposition, a sentiment that has been building since the conclusion of its major legal proceedings. Looking ahead, the confluence of shrinking available supply and accelerating institutional demand creates a classic bullish setup. If ETF inflows continue at this pace, the buy-side pressure could far outstrip the readily available sell-side liquidity on exchanges. The next key resistance levels to watch WOULD be around the $2.60-$2.75 zone, which represents previous areas of consolidation. For the bullish thesis to remain intact, XRP must now hold above the $2.25-$2.30 region as a new support base. The early 2026 momentum for XRP appears robust, setting the stage for a potentially transformative year as it cements its role within the institutional digital asset landscape.
XRP Surges 12% Amid Record ETF Inflows and Tightening Supply
XRP rallied nearly 12% on Tuesday, breaching the $2.40 threshold as institutional demand and shrinking exchange reserves propelled its early-2026 momentum. The token peaked at $2.38, overcoming a weeks-long resistance zone with one of its highest volume surges since mid-December.
US spot XRP ETFs recorded $48 million in net inflows Monday—their strongest single-day performance since launch—pushing cumulative inflows past $1 billion. The products have maintained an unbroken streak of demand since their November 13 debut, with several ETFs hitting record trading volumes.
Declining exchange balances and improving US regulatory sentiment are compounding bullish pressure. The sustained ETF inflows now represent a structural demand source, systematically absorbing sell-side liquidity.
SWIFT's Potential XRP Integration for Global Payments
SWIFT may be inching closer to adopting cryptocurrencies like XRP for cross-border payments as regulatory clarity improves. Former CEO Gottfried Leibbrandt previously cited regulatory uncertainty as a barrier, but the landscape has since evolved. The payment giant's recent partnership with Consensys to develop a distributed ledger signals a strategic shift toward blockchain efficiency—a MOVE perceived as direct competition to Ripple's XRP-based solutions.
The collaboration aims to enable faster, cheaper transactions, mirroring benefits already demonstrated by Ripple's technology. While SWIFT hasn't confirmed XRP integration, its distributed ledger initiative suggests growing institutional willingness to embrace crypto infrastructure once regulatory risks diminish.
XRP's Q1 2026 Trajectory: Regulatory Clarity and Market Momentum
Ripple's XRP is gaining momentum as cryptocurrency markets rebound, with Bitcoin surpassing $90K. Three key catalysts are emerging for XRP in Q1 2026, centered on regulatory developments and institutional adoption.
The Clarity Act looms as a pivotal moment for XRP, potentially resolving years of regulatory ambiguity that have suppressed its price. Market observers note the bill could establish a structured framework for digital assets, with XRP positioned to benefit disproportionately given its history of legal challenges.
Institutional interest continues building, evidenced by BNY Mellon's recent partnership with RLUSD. This follows a broader trend of traditional finance entities preparing for crypto integration amid evolving regulations.
Geopolitical tensions and macroeconomic shifts are accelerating portfolio diversification into digital assets. XRP's price action suggests traders are anticipating these developments, though volumes remain below 2025 peaks.
US Spot XRP ETF Inflows Surge to One-Month High Amid Token Rally
US spot XRP exchange-traded funds (ETFs) recorded their strongest net inflows in over a month on January 5, as XRP's price surged and trading activity spiked. According to SoSoValue, the ETF complex attracted $46.1 million in net new money—the seventh-largest inflow day since launch and the highest since December 3.
The rally coincided with an 11% jump in XRP's price to $2.40, pushing its market capitalization above $144.3 billion. Spot trading volume soared 144% to $7.32 billion, reflecting heightened investor interest.
Flow leadership was distributed across issuers, with Bitwise's XRP product leading at $16.61 million in daily net inflows. Canary's XRPC maintained its dominance in total net assets, reaching $407.01 million.
