After months of consolidation, XRP has decisively shattered its trading range. On December 3, the digital asset powered by Ripple Labs surged past the critical $2.10 resistance level, climbing 8% to reach $2.20. This move appears driven by a powerful confluence of factors extending far beyond speculative trading, including surging institutional demand, robust network growth, and a shifting macroeconomic landscape. Market participants are now questioning whether this marks the beginning of a significant new uptrend.
Macroeconomic Tailwinds Provide a Favorable Backdrop
A changing interest rate outlook is creating a supportive environment for risk assets like cryptocurrencies. Recent U.S. economic data has alleviated some fears of stagflation. The November ADP employment report showed a decline of 32,000 jobs, suggesting the Federal Reserve may reconsider its restrictive monetary policy. Concurrently, the ISM Services PMI edged up from 52.4 to 52.6, while its price index fell from 70 to 65.4, indicating potential easing inflationary pressures.
Market expectations, as reflected in the CME FedWatch Tool, now price in an 89% probability of a rate cut in December. The likelihood of a cut by March 2026 has also risen significantly to 52.9%, up from 45.6% just one day prior. Such a dovish pivot typically fuels capital flows into higher-risk, higher-reward asset classes.
Institutional Capital Floods In Via Record ETF Inflows
The most compelling evidence for sustained buying pressure comes from the spot ETF market. XRP-focused exchange-traded funds have recorded net inflows for twelve consecutive days, a record streak that is altering the market’s underlying structure. On December 2 alone, these products attracted $67.74 million, following an even larger $89.65 million inflow the previous day.
Leading the daily tally was the Grayscale XRP ETF (GXRP) with $21.17 million in new capital. However, the Canary XRP ETF (XRPC) maintains the overall lead with cumulative inflows of $355.21 million since its launch. The total assets under management for XRP ETFs are now approaching the billion-dollar threshold, a signal that is difficult for even skeptical observers to ignore. This regulated access point is drawing institutional capital previously unavailable to the token, tilting the supply-demand balance in favor of buyers.
On-Chain Activity Reaches Multi-Year Highs
Parallel to the ETF enthusiasm, fundamental activity on the XRP Ledger (XRPL) is exploding. On-chain metrics reveal over 40,000 “Account Set” operations, a level of network engagement not seen in years. This resurgence is largely attributed to growing usage of Automated Market Makers (AMMs) within the XRPL ecosystem, attracting developers, increasing liquidity, and fostering new token projects.
Should investors sell immediately? Or is it worth buying XRP?
Analysts note that this combination—institutional accumulation through ETFs coupled with organic network expansion—bears resemblance to the setup observed in early 2024, which preceded a massive price breakout. Similar signals at that time were followed by gains measuring several hundred percent.
Technical Structure Supports Further Gains
From a technical analysis perspective, XRP has broken free from a prolonged consolidation phase. The foundation was an ascending triangle pattern, characterized by successively higher lows at $2.00, $2.04, and $2.155. The breakout was accompanied by a volume spike of 182% above the 24-hour average, confirming substantial buying interest.
The weekly Stochastic RSI indicator has just turned upward from oversold territory. This same pattern preceded a 600% surge in 2024 and signaled a 130% rally in mid-2025. While XRP currently trades below its 50-day ($2.32) and 200-day ($2.50) moving averages, a sustained hold above $2.20 could pave the way for a test of these levels. The next significant resistance zone sits at the $3.00 psychological barrier, where the corrective phase began in October.
Ripple Maintains Strategic Treasury Management
In the background, Ripple Labs continues its disciplined management of its XRP holdings. On December 1, the company moved 1 billion tokens across three wallets before subsequently locking 700 million XRP in escrow accounts. This controlled supply management—a consistent practice since 2025—serves to prevent market shocks from sudden supply floods and demonstrates a long-term strategic approach.
The coming weeks will be critical in determining whether XRP can establish $2.20 as a new support floor. Success could open a path toward the $2.35 to $2.40 range. A failure to defend this level, however, risks a pullback toward the November low of $1.82. With institutional capital providing a foundation, network activity booming, and macroeconomic conditions turning favorable, the risk-reward calculus for XRP currently appears compelling.
Ad
XRP Stock: Buy or Sell?! New XRP Analysis from December 6 delivers the answer:
The latest XRP figures speak for themselves: Urgent action needed for XRP investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from December 6.
XRP: Buy or sell? Read more here...