- XRP surged as ETF inflows and liquidations boosted market recovery momentum
- Strong volume and ETF demand pushed XRP higher during market rebound
- XRP led crypto recovery as shorts unwound and liquidity strengthened
XRP saw a notable gain of 9.42%, with higher volume and short liquidations driving the move as crypto markets entered a recovery phase. During the session, the token traded near $2.33 as sustained buying interest signaled improving sentiment after consolidation.
At the same time, market capitalization rose alongside the rally, signaling broader market engagement as XRP’s valuation increased to $141.71 billion, representing a 9.55% rise.
Trading activity also surged sharply, reinforcing the breakout narrative as 24-hour trading volume reached $7.59 billion, marking a 125.35% jump according to CoinMarketCap chart data. Technical signals played a central role in driving momentum, as BTC Markets analyst Rachael Lucas noted that XRP held above its 50-day moving average after breaking out of a falling wedge pattern.
Short positioning also amplified the move as bearish bets unwound rapidly, with Lucas noting that more than $250 million in short positions were liquidated within a short window. That wave of forced buying increased volatility while pushing prices higher, while rising volume further confirmed the strength behind the advance.
Also Read: Bitcoin, XRP Surge as Crypto Market Prices Flash Strong Momentum Today
ETF inflows add structural support to the rally
Institutional demand added another layer of support to XRP’s performance, as according to Kronos Research CIO Vincent Liu, the asset pushed through key resistance levels on strong volume, attracting fresh inflows. Spot XRP exchange-traded funds recorded notable demand during the session, with data from SoSoValue showing net inflows of $46.1 million, the strongest daily total since Dec. 3.
ETF trading activity also picked up sharply, as total daily volume reached $72.15 million, placing it among the highest levels recorded for XRP-linked products. Consistent ETF demand has improved overall liquidity conditions, while XRP’s depth continues to make it an efficient instrument for expressing directional exposure in volatile markets.
Since the first XRP ETF launched on Nov. 13, inflows have remained steady, with cumulative net inflows now standing at $1.23 billion, reflecting sustained institutional interest. Regulatory clarity following the Ripple and SEC settlement further supported sentiment, as market participants continue to view XRP as a key asset tied to cross-border payment use cases.
Meanwhile, the broader crypto market showed parallel signs of recovery, with Bitcoin gaining 7.4% over seven days to trade at $93,719 and ether rising 9.3% to $3,225. The GMCI 30 index advanced 3.31% in 24 hours and climbed 12.33% over the past week, while the Crypto Fear and Greed Index improved to 29 from 11 in mid-December.
XRP’s rally highlighted how ETF flows, short liquidations, and rising volume can quickly align, as market participants continue watching whether momentum can remain sustained above current levels.
Also Read: Starknet Faces Fresh Mainnet Outage in 2026 as Network Stability Comes Under Fire
