XRP has broken through $2, becoming the third-largest cryptocurrency by market capitalization after surpassing BNB, fueled by $13.6 million in ETF inflows. The token's rally marks a breakout from an eight-month downtrend, with traders eyeing potential gains toward $2.50. This surge reflects growing institutional confidence in XRP amid broader crypto market dynamics.
On January 3, 2026, XRP experienced a significant price surge, climbing 8.7% from $1.8766 to $2.0227 over the previous 24 hours. The breakout gained momentum at 17:00 UTC, when trading volume spiked to 154.4 million—142% above the session average—pushing the price decisively through the $1.96 resistance level. This flipped the prior ceiling into support, establishing a new zone between $2.01 and $2.03 that traders now view as critical to hold.
The rally propelled XRP past BNB, making it the third-largest cryptocurrency by market cap, behind only Bitcoin and Ethereum, according to CoinMarketCap data. This shift underscores renewed confidence in XRP following years of regulatory scrutiny. Institutional interest appears to be broadening, as evidenced by $13.6 million in inflows to XRP ETFs, per SoSoValue—though smaller than the $471 million for Bitcoin and $174 million for Ethereum products on the same day.
Technically, XRP has escaped an eight-month descending channel that began in July 2025, when the token peaked near $3.40. Analyst Steph is Crypto highlighted the weekly breakout at $2.01, suggesting a potential rise to $2.50. Standard Chartered has forecasted a 330% upside for XRP in its latest outlook.
However, the move faces tests: a late-session pullback from $2.031 to $2.023 held above $2.00 without cascading lower, but failure to maintain $2.01 could retest $1.96. Not all developments are positive; ProShares scrapped its leveraged XRP ETF plan, and CoinShares dropped its push amid demand reviews.
Traders emphasize that sustaining above $2.00 is key to validating the breakout and avoiding a return to prior ranges. This positions XRP at a pivotal moment, balancing bullish momentum with sensitivity to early-year positioning.
