XRP Surges 25% in a Week, Nears $2.5 Amid ETF Inflows

The rally began after XRP successfully tested and held a crucial support level near $2, an area that proved resilient throughout the previous year. This defense triggered significant buyer interest, reversing seven consecutive weeks of losses in a swift upward move. Technical analyst ChartNerdTA described the action as a “full recovery,” noting it has taken out the “last 7 weeks of downside PA.” The price has now entered a critical testing zone between $2.34 and $2.4, with short-term momentum appearing intact.

Having cleared several technical hurdles, the focus for many traders has shifted to the $2.5 level as the next major resistance test. A decisive break above this point could open the path toward $2.75. However, analysts like CryptoWZRD point to specific resistance around $2.27 on the XRP/BTC pair, suggesting that “a retest of $2.28 with a reversal could offer a long” entry opportunity. They caution that failure to hold gains could result in range-bound movement, highlighting the delicate balance in the current price action.

A fundamental pillar supporting the rally is robust institutional interest, evidenced by the performance of U.S. spot XRP exchange-traded funds (ETFs). These products recorded over $46 million in net inflows on a single Monday, continuing an unbroken streak of daily inflows since their launch in mid-November. This consistent capital allocation reflects sustained demand from institutional buyers, providing a steady bid beneath the market.

Concurrently, the available supply of XRP on cryptocurrency exchanges has been declining. This thinning of exchange reserves reduces the number of tokens readily available for sale, which can act as a supportive factor for price appreciation if buying demand persists or increases. The combination of steady ETF inflows and a shrinking exchange supply creates a potentially bullish supply-demand dynamic for XRP.

While the price action is broadly positive, analysts are pinpointing specific levels that could dictate the rally’s next phase. Analyst Steph Is Crypto highlighted the $2.41 zone as a significant “cost-basis wall,” where approximately 1.56 billion XRP were previously purchased. Movements into such areas often encounter selling pressure from holders looking to exit their positions at break-even, potentially creating temporary resistance.

Prominent analyst John Bollinger offered a more measured perspective. While acknowledging the “strong lift” on the XRP chart, he contrasted it with the patterns of Bitcoin and Ethereum, which he described as stronger. Bollinger pointed to the absence of tight consolidation before XRP’s upward move, suggesting this could make the price action less stable compared to its larger peers. This caution underscores that, despite the impressive gains, the sustainability of the breakout is still under scrutiny by seasoned market observers.

The market now faces a clear test. Traders are watching to see if XRP can muster the strength to break and sustainably hold above the $2.5 mark, which would signal a continuation of the bullish trend. The alternative is that selling pressure builds near the current levels, particularly around the identified cost-basis wall near $2.41, leading to a consolidation or pullback. The interplay between persistent ETF inflows, technical resistance, and analyst sentiment will determine whether this two-week rally marks the beginning of a longer-term reversal or a shorter-term rebound.