XRP price breakout $2.12: Shrinking exchange supply triggers squeeze
XRP price surged past $2.12 on January 5, 2026, as exchange supply hit multi-year lows and ETF inflows reached $13.59M. Read the full market analysis.
Exchange vaults are emptying while ETFs keep buying. XRP has just smashed through its $2.12 ceiling on massive volume, signaling a potential supply squeeze that could redefine its 2026 trajectory. This move isn't just about speculation—it's driven by a tightening grip on available supply.
XRP price breakout $2.12 and Institutional Demand
According to CoinDesk, institutional appetite for regulated exposure remains fierce. U.S.-listed spot XRP ETFs recorded $13.59 million in fresh inflows earlier this week. These steady flows are acting as a vacuum, absorbing market supply even during periods of choppy price action.
Simultaneously, exchange balances for XRP have hit multi-year lows. Traders interpret this as a 'supply tightness' signal. With XRP Ledger daily transactions climbing back toward the 1 million mark, the underlying utility of the network is reinforcing the bullish narrative.
Technical Roadmap: What's Next for XRP?
The breakout above $2.12 occurred with volume running 47.6% above the seven-day average—a critical confirmation signal. After the surge, XRP entered a consolidation band between $2.128 and $2.152. If it holds the $2.128 support, the next leg up could quickly test the $2.20 resistance zone.
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