XRP breaks $2.12 as shrinking exchange supply lead to price squeeze higher

Markets Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email XRP breaks $2.12 as shrinking exchange supply lead to price squeeze higher Exchange balances are at multi-year lows, signaling potential supply tightness that could amplify future rallies. By Shaurya Malwa , CD Analytics Updated Jan 5, 2026, 5:25 a.m. Published Jan 5, 2026, 5:24 a.m. (CoinDesk Data) What to know : XRP surged past $2.12, breaking a key resistance level with above-average trading volume. Institutional demand remains strong, with U.S.-listed spot XRP ETFs seeing $13.59 million in new inflows this week. Exchange balances are at multi-year lows, signaling potential supply tightness that could amplify future rallies. XRP pushed above $2.12 as buyers forced a break through a stubborn resistance area on above-average volume, with the move landing at a time when exchange balances are sitting near multi-year lows and U.S.-listed spot ETFs continue to absorb supply — a mix that traders often read as supportive for follow-through if the breakout holds. News background Institutional demand for regulated XRP exposure has stayed constructive, with U.S.-listed spot XRP ETFs adding $13.59 million in fresh inflows earlier this week. That flow profile has mattered because it’s been steady rather than headline-driven, helping absorb supply during periods when spot price action has been choppy. STORY CONTINUES BELOW Don't miss another story. Subscribe to the Crypto Daybook Americas Newsletter today . See all newsletters Sign me up By signing up, you will receive emails about CoinDesk products and you agree to our terms of use and privacy policy . At the same time, exchange balances have continued to trend lower, a dynamic traders often frame as a “supply tightness” signal — not a guarantee of upside, but a condition that can amplify rallies when demand picks up. XRP’s market cap rose to about $121.7 billion on the session, underscoring the scale of participation behind the move. On the network side, activity has been improving, with XRP Ledger transaction counts climbing back toward the 1 million daily mark. That tends to reinforce the narrative that demand isn’t purely speculative, even if price action remains the key driver in the short term. Technical analysis XRP rose 2.04% to $2.12, breaking through the $2.10–$2.12 ceiling that had capped recent rebound attempts. The breakout came with volume running 47.6% above the seven-day average, a key confirmation signal because resistance breaks that happen on light participation often fail quickly. After the initial push, XRP shifted into a tight consolidation band between $2.128 and $2.152, with repeated tests of $2.128 holding as short-term support. That’s the level traders will likely treat as the “line in the sand” for whether the move is building a base or turning into a quick rejection. The structure is constructive: price is consolidating above former resistance, rather than immediately falling back into the prior range. Still, the next upside leg likely needs fresh participation — volume tapered after the surge, suggesting the market is waiting for either a broader risk-on push or another catalyst. The key overhead area now sits around $2.15–$2.16, which is the next supply pocket inside the broader $2.06–$2.16 range. A clean push through that zone typically brings $2.20 into play quickly, while a failure that loses $2.128 risks a slide back toward the lower range boundary. Price action summary XRP gained 2.04% to $2.12, outperforming broader markets by ~180 bps Volume ran 47.6% above the weekly norm, supporting the breakout Price consolidated in a $2.128–$2.152 band after the initial push The breakout held above former resistance, keeping upside structure intact What traders should know This trade is increasingly about structure + supply conditions. If $2.128 holds: XRP is building a post-breakout base, and the next test is $2.15–$2.16. A clean break there shifts focus to $2.20–$2.28, where sellers have previously shown up. If $2.128 fails: the breakout risks reverting into the prior range, with downside pullback targets near $2.06 and then the range floor. Why the move matters: ETF inflows + shrinking exchange supply can make rallies sharper when they start. That doesn’t remove overhead supply, but it raises the odds that resistance breaks can extend faster than traders expect once stops trigger and momentum players step in. Net: XRP has done the hard part by clearing $2.12 with volume. The next signal is whether it can hold above $2.12–$2.13 on retests — that’s what separates continuation from another “poke-and-fade.” More For You KuCoin Hits Record Market Share as 2025 Volumes Outpace Crypto Market By CoinDesk Research Dec 22, 2025 Commissioned by KuCoin KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market. What to know : KuCoin recorded over $1.25 trillion in total trading volume in 2025 , equivalent to an average of roughly $114 billion per month , marking its strongest year on record. This performance translated into an all-time high share of centralised exchange volume , as KuCoin’s activity expanded faster than aggregate CEX volumes , which slowed during periods of lower market volatility. Spot and derivatives volumes were evenly split , each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line. Altcoins accounted for the majority of trading activity , reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover. Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity , indicating structurally higher user engagement rather than short-lived volume spikes. View Full Report More For You PwC deepens crypto push as U.S. rules shift and stablecoins go mainstream: Report By Shaurya Malwa , AI Boost | Edited by Omkar Godbole 30 minutes ago PwC aims to enhance its audit and consulting services by exploring the use of stablecoins to improve payment efficiency. What to know : PwC is increasing its focus on crypto clients due to clearer U.S. regulations, including the GENIUS Act. The firm plans to expand its involvement in stablecoin and tokenization as part of its growth strategy. PwC aims to enhance its audit and consulting services by exploring the use of stablecoins to improve payment efficiency. 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