XRP Surges 12% to $2.42 Amid ETF Inflows and Short Squeeze

XRP experienced a 12% surge, reaching $2.42 on January 6, its highest since November 2025, before settling around $2.35.

A significant influx of capital into XRP-focused ETFs and technical breakout patterns contributed to the surge.
Spot XRP ETFs saw $48 million in inflows on January 5 and 6, the largest daily inflows since their launch in November 2024.
ETFs have consistently attracted about $1.23 billion over eight weeks, indicating strong institutional interest.
Regulatory clarity following Ripple's settlement with the SEC in 2025 has removed major adoption barriers.

XRP Technical Analysis

XRP broke out from a falling wedge pattern, sustaining levels above its 50-day moving average.
Over $250 million in short positions were liquidated during the surge, intensifying the rally.
Analysts suggest potential targets near $3.50 if current support holds.

Market Context

XRP's rise aligns with a broader crypto market recovery; Bitcoin and Ethereum increased by 7.4% and 9.3% respectively.
Institutional backing is growing, with endorsements from PwC and projections by Standard Chartered for XRP prices up to $8 by end-2026.

As regulatory uncertainties diminish, XRP stands to benefit from technical momentum and increasing institutional demand, with key resistance around $2.30 being closely monitored.