XRP has rebounded above the $2 level after a surge in capital inflows added more than $6 billion to its market capitalization in a single day.
The move followed a period of consolidation that had kept the token below the psychologically important threshold, in line with broader cryptocurrency market sentiment.
At press time, XRP’s market capitalization stood at $121.74 billion, up from $115.15 billion 24 hours earlier, an addition of $6.5 billion.
XRP one-day market cap chart. Source: CoinMarketCapPrice action reflected the increase in market value, with XRP trading at $2.01, up more than 5% over the past 24 hours. On a weekly basis, XRP is up nearly 9%.
At the same time, XRP is currently sitting just below its 50-day simple moving average (SMA) at $2.04 and well below the 200-day SMA at $2.47.
This suggests short-term momentum remains weak and the broader trend bearish, as the price has yet to reclaim key moving average resistance. The gap to the 200-day SMA indicates XRP remains in a longer-term downtrend despite recent stabilization.
The 14-day RSI stands at 56.54, placing XRP in neutral territory. This suggests the asset is neither overbought nor oversold, pointing to limited conviction from both buyers and sellers.
Why XRP is rallying
XRP’s rally is supported by strong spot ETF inflows and shifting regulatory expectations. Data shows U.S. spot XRP ETFs recorded $13.59 million in net inflows on January 2, pushing total inflows since launch to $1.18 billion and tightening near-term supply and demand dynamics.
The move was further reinforced by improving regulatory sentiment following the departure of SEC Commissioner Caroline Crenshaw, a vocal critic of crypto ETFs and the SEC’s stance in the Ripple case.
Finally, speculation around a potential Market Structure Bill markup on January 15 also lifted policy expectations, helping XRP outperform the broader crypto market, where inflows into bitcoin ETFs remained relatively subdued.
Featured image via Shutterstock
Source: https://finbold.com/xrp-reclaims-2-after-over-6-billion-inflow-in-24-hours/
