breaks $2.12 as shrinking exchange supply lead to price squeeze higher
The post breaks $2.12 as shrinking exchange supply lead to price squeeze higher appeared on BitcoinEthereumNews.com.
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. 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.…
Filed under: News - @ January 5, 2026 5:27 am