XRP extended its breakout sequence on Tuesday, rising 6.2% to $2.40 as institutional flows accelerated across major exchanges. The token decisively broke above the $2.35 resistance level at 169% above average, marking its strongest single-session gain in over a week and establishing new cycle highs near $2.43 before consolidation.
News background
- Canary Capital, Bitwise, Franklin Templeton and 21Shares filed amended S-1 registration statements for spot XRP exchange-traded funds that introduced standardized listing language designed to streamline SEC review under existing 8(a) procedures.
- The five spot XRP ETFs have been listed on the DTCC ahead of a potential US launch this month.
- Analysts see the coordinated filings as a potential fast track to automatic approval, echoing the regulatory momentum seen during the Bitcoin and Ether ETF approval cycles earlier this year.
- The filings bolster institutional appetite for XRP exposure amid strengthening network fundamentals.
Summary of price action
- XRP advanced from $2.26 to $2.40 through three distinct impulse waves that generated a $0.19 intraday range and confirmed a clear ascending structure.
- The breakout triggered at midnight UTC as volume surged to 119.6 million tokens – 169% above the daily average – pushing the price through $2.35 resistance and into new short-term highs around $2.43.
- A brief pullback to $2,395 tested support in the New York session, with buyers absorbing profit-taking pressure without disrupting the broader uptrend.
- Subsequent recovery attempts held above the 1-hour 50-EMA, validating strong structural support across multiple timeframes.
Technical Analysis
- The pattern of higher highs and higher lows confirms continued bullish control. Momentum indicators remain constructive, with the RSI holding close to 64 and the MACD maintaining a positive divergence.
- TD sequential patterns on the 4-hour chart signaled a potential continuation setup after the retracement that was in line with short-term accumulation behavior identified in whale-tier wallet flows.
- Whale transfers totaling 500,000 XRP over 48 hours introduced minor overhead pressure but did not disrupt accumulation zones. Consolidation between $2.39-$2.41 represents controlled profit taking rather than distribution.
What traders should know
- Market focus is now centered on XRP’s ability to hold the $2.39-$2.395 support band, which has served as the focal point of every breakout extension since early November.
- Sustained closes above $2.40 would keep the path open towards $2.43 and the $2.50 extension target, while failure to defend $2.39 risks short-term retracement towards $2.34-$2.31.
- ETF headlines remain the primary volatility driver in the near term. If one or more filings reach automatic approval without SEC objections, analysts expect a surge in liquidity that could accelerate XRP’s advance into the $2.54-$2.80 zone, confirming the continuation of the broader Q4 rally.
