XRP posted strong gains on Monday, outperforming much of the cryptocurrency market as digital assets opened 2026 on a firmer footing. The token climbed 12.34% over the past 24 hours to trade near $2.40, reaching its highest level since mid-November, according to data.
The move placed XRP at the forefront of a broader market recovery that has taken shape in the first week of the year. Analysts pointed to a combination of technical signals, rising trading activity, and renewed investor interest as key drivers behind the rally.
Rachael Lucas, a crypto analyst at BTC Markets, said XRP recently broke out of a falling wedge pattern and managed to hold above its 50-day moving average, both widely watched indicators of positive momentum. At the same time, the market saw a wave of short liquidations. More than $250 million in XRP short positions were wiped out within an hour, suggesting that rapid buying and forced short covering helped push prices higher.
Lucas added that the surge in trading volume alongside these liquidations created conditions for sharp short-term moves, increasing both volatility and upside potential.
Another factor supporting XRP’s advance has been growing activity in exchange-traded funds tied to the token. Vincent Liu, chief investment officer at Kronos Research, noted that XRP broke through several key resistance levels on strong volume, while inflows into spot XRP ETFs further boosted market confidence.
Data from SoSoValue showed that spot XRP ETFs recorded $46.1 million in net inflows on Monday, their largest single-day intake since early December. Daily trading volume across these funds reached $72.15 million, the highest level since late November and the second-highest on record. Liu said the inflows reflected renewed interest in XRP’s role in global payments, adding that its liquidity makes it an efficient way for investors to express directional views on the market.
Since the first spot XRP ETF launched on Nov. 13, the funds have attracted steady demand. They have now posted eight consecutive weeks of net inflows, totaling about $1.23 billion as of Monday.
Lucas said this sustained interest is underpinned by several developments, including clearer regulation following Ripple’s settlement with the U.S. Securities and Exchange Commission, growing attention to XRP’s use in cross-border payments, and increased participation from long-term institutional investors looking to diversify beyond bitcoin and ether.
The wider crypto market has also shown signs of recovery. Bitcoin has risen 7.4% over the past week to trade near $93,719, while ether is up 9.3% over the same period at around $3,225. The GMCI 30 index, which tracks the top 30 cryptocurrencies by market value, has gained 12.33% over the past week and 3.31% in the last 24 hours.
Investor sentiment, while still cautious, has improved. The Crypto Fear and Greed Index stood at 26 at the time of writing, remaining in the fear zone but well above the mid-December low of 11.
