Published: January 5, 2026
XRP has surged past key resistance levels in early 2026, trading at $2.08 amid a notable supply squeeze and robust ETF demand. Exchange-held balances hit multi-year lows around 1.6 billion tokens, while U.S. spot ETFs accumulated over $1.2 billion in assets—highlighting institutional buying pressure and reduced sell-side liquidity.
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XRP Price Rally Gains Momentum
Current performance shows strong conviction:
- Price: $2.08 (+4.28% 24h).
- Market Cap: $129.29 billion.
- 24-Hour Volume: $3.36 billion.
- Recent Break: Above $2.00 psychological barrier.
The rally stands out against broader consolidation, positioning XRP as a leader in altcoin recovery.
Key Resistance and Support Levels
- Support: $1.90–$2.00 zone holding firm.
- Resistance: $2.20–$2.35 next targets.
- Breakout Scenario: Sustained volume could push toward $2.50+.
XRP Supply Squeeze: Exchange Balances at Multi-Year Lows
On-chain metrics reveal tightening liquidity:
- Exchange Supply: ~1.6 billion XRP (lowest since 2018).
- Decline: 57% drop since October 2025.
- Implication: Reduced available tokens for selling.
This structural shift limits downside pressure during rallies.
ETF Demand Fuels Institutional Accumulation
U.S. spot XRP ETFs drive the squeeze:
- Total AUM: Over $1.2–$1.29 billion.
- Inflows: Consistent, absorbing ~750 million tokens.
- Products: Bitwise, Canary, Franklin, Grayscale, others.
Regulated vehicles lock supply long-term, supporting scarcity narrative.
Market Context: Broader Implications
The rally fits evolving trends:
- RWA tokenization growth on XRPL.
- Post-regulatory clarity momentum.
- Rotation into utility-focused assets.
Outlook for XRP in 2026
Potential scenarios:
- Bullish: Sustained ETF flows and upgrades push higher.
- Risks: Macro volatility or delayed adoption.
- Consensus: Supply dynamics favor upside if demand persists.
Conclusion
XRP’s price rally to $2.08, backed by supply squeeze and ETF demand, signals shifting fundamentals in early 2026. With exchange balances at lows and institutions accumulating, reduced liquidity could amplify moves. Monitor volume and resistance breaks for confirmation in this evolving environment.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrency markets are highly volatile.
