Emre Yumlu 
As 2026 begins, Ripple’s XRP is presenting a compelling mix of technical strength and on-chain signals. Recent price action suggests that upward momentum is building, supported by a notable decline in XRP balances held on centralized exchanges. When shrinking supply converges with sustained demand, price movements tend to accelerate — and XRP may be entering such a phase.
The broader setup indicates that market participants are gradually shifting from short-term trading behavior toward longer-term positioning, a dynamic that often precedes more decisive price trends.
XRP Breaks Above Key Resistance Levels
XRP recently managed to push above the $2.12 level, an area that had acted as a stubborn resistance zone. What makes this move particularly noteworthy is that it occurred alongside above-average trading volume, signaling stronger conviction from buyers rather than a low-liquidity spike.
Volume-backed breakouts are typically viewed as more sustainable, especially when supported by broader market participation. While short-term volatility remains possible, the structure of the move suggests buyers are increasingly willing to defend higher price levels.
Exchange Balances Near Multi-Year Lows
On-chain data shows that XRP balances on exchanges have fallen to levels not seen in several years. This trend is commonly described as a form of “supply tightening.” Although reduced exchange supply does not automatically lead to price appreciation, it can significantly amplify rallies when demand begins to strengthen.
Despite ongoing fluctuations in the spot market, the continued outflow of XRP from exchanges implies that investors may be opting to hold their tokens off-platform, potentially signaling confidence in longer-term value rather than short-term speculation.
Steady Institutional Demand via Spot XRP ETFs
Institutional interest in regulated XRP exposure remains constructive. U.S.-listed spot XRP exchange-traded funds recorded approximately $13.59 million in net inflows earlier in the week. Importantly, these inflows appear consistent rather than driven by one-off headlines.
Such steady accumulation helps absorb available supply during periods of sideways price action, laying the groundwork for healthier breakout attempts when momentum builds.
Network Activity Adds Fundamental Support
Beyond price and supply dynamics, activity on the XRP Ledger is also showing signs of improvement. Daily transaction counts have climbed back toward the 1 million mark, reinforcing the idea that usage is increasing alongside market interest.
This combination of rising network activity and price strength suggests that demand is not purely speculative. Following the recent advance, XRP’s market capitalization has reached approximately $121.7 billion, reflecting broad-based participation.
Overall, the convergence of declining exchange supply, consistent institutional inflows, and improving network fundamentals positions XRP in a setting where upward volatility could become more pronounced in the periods ahead.
You can join our Telegram channel to not miss the news and stay informed about the crypto world.