XRP surged past the $2.12 resistance level on January 5, 2026, marking a significant technical breakout supported by above-average trading volume and favorable supply dynamics. The price reached $2.12, a 2.04% gain, and consolidated between $2.128 and $2.152 following the initial push.
The rally occurred against a backdrop of tightening supply on exchanges, with balances sitting near multi-year lows. This "supply tightness" is viewed by traders as a condition that can amplify price rallies when demand increases. Concurrently, U.S.-listed spot XRP ETFs have provided steady institutional demand, adding $13.59 million in fresh inflows earlier in the week. This consistent absorption of supply has been constructive even during periods of choppy price action.
On the network side, activity on the XRP Ledger has been improving, with daily transaction counts climbing back toward the 1 million mark, suggesting underlying utility demand beyond pure speculation. XRP's market capitalization rose to approximately $121.7 billion during the session.
The broader crypto market also saw positive momentum, with Bitcoin crossing $91,000 and Ethereum posting gains, lifting the total market value above $3.2 trillion. Analysts noted that the rally was partly fueled by over $130 million in short position liquidations in the past 12 hours, creating additional buying pressure. The timing, with traditional stock markets closed, also concentrated trading activity into the crypto market.
Technically, the breakout volume was 47.6% above the seven-day average, a key confirmation signal. Traders are now watching the $2.128 level as critical short-term support. A hold above this level could set the stage for a test of the next resistance zone between $2.15 and $2.16, with a clean break there potentially targeting the $2.20–$2.28 range.
