XRP surged overnight, adding an impressive $9 billion to its market capitalization within 24 hours.
The cryptocurrency's price climbed above $2.20, outperforming the broader crypto market and attracting renewed institutional interest.
This sharp move comes on the heels of significant developments in XRP exchange-traded funds (ETFs) and heightened trading activity.
XRP's Market Capitalization Rally and ETF Influence
According to Ali Charts on X, while XRP jumped 17% over the last 72 hours, whales used this momentum to take profits, selling more than 180 million tokens during the rally.
Despite this, retail interest surged, pushing social dominance of XRP up by 12% as traders and institutional investors engaged more actively.
The market cap spiked from about $123 billion on November 24 to roughly $132.7 billion, signaling confident buying pressure despite some late-session profit-taking.
This sharp rise coincided directly with the launch of two new U.S. spot XRP ETFs by Grayscale and Franklin Templeton, which collectively attracted $164 million in net inflows on the first day of trading, November 24.
These ETFs are providing significant liquidity support, locking up tokens in custody, which could reduce selling pressure over time.
Canary Capital’s existing ETF, XRPC, holds $306 million in assets, indicating robust demand for regulated XRP investment vehicles.
The increased trading volume hit $6.34 billion, up more than 51.5%, reflecting both institution-led and short-term trader activity.
Technical Signals and Price Resistance
Momentum indicators signaled a bullish setup before the price spike, with a golden cross and RSI divergence leading to a breakout.
Yet, XRP faced resistance above $2.23, where selling pressure from whales was evident. As Ali Charts tweeted on X, whale addresses offloaded approximately $396 million worth of XRP during the move, balancing out retail-driven buying.
The ability for XRP to sustain levels above $2.20 remains critical; a drop below this could prompt corrections due to MACD divergence and a high volume-to-market-cap ratio, typical of market peaks.
The launch of these ETFs marks an important milestone for XRP’s mainstream accessibility and institutional acceptance.
Franklin Templeton’s ETF uses Coinbase Custody and BNY Mellon as custodians, adding to its credibility.
The ETFs allow investors to gain XRP exposure without directly holding the cryptocurrency, thus offering a more transparent and regulated investment method.