XRP Breaks $1.35 Resistance As Ceasefire Boosts Sentiment And Institutional Adoption Grows

XRP has broken above the $1.35 resistance level, ending three failed attempts since late March. The rally was primarily driven by a two-week US-Iran ceasefire that improved overall market sentiment and triggered $196.7 million in short position liquidations across the crypto sector. Bitcoin surged past $71,000 during this period, further supporting the broader market recovery.

This breakout coincides with significant whale accumulation, with over 11 million XRP removed from exchanges daily. Analysts suggest that maintaining momentum toward the $2 target depends heavily on the ceasefire becoming permanent and the CLARITY Act advancing through the Senate.

Institutional interest remains robust despite broader market fear. A January 2026 survey by Coinbase and EY-Parthenon revealed that 18% of institutional investors already hold XRP, with 25% planning to increase their allocation in 2026.

How Is Ripple Transforming Its Institutional Infrastructure?

Ripple has closed two additional acquisitions in 2026 despite earlier promises to slow its expansion. The company acquired Solvexia for financial automation and BC Payments for a regulated license, expanding its footprint in Australia and the Asia-Pacific region.

These moves have transformed Ripple from a cross-border payments startup into a full-stack financial institution. It now controls Ripple Prime for global prime brokerage, Ripple Treasury for corporate management, and holds 75 regulatory licenses globally.

The company aims to become the first trillion-dollar crypto firm by controlling how institutions trade and corporations move money. However, a critical gap remains in compliance technology, as Ripple relies on third-party relationships for infrastructure in Africa, Latin America, and the Middle East.

Ripple Treasury has also launched native digital asset capabilities on its GTreasury platform. This allows Fortune 500 CFOs to hold and manage XRP and RLUSD directly alongside traditional cash in a unified dashboard.

The platform previously processed $13 trillion in fiat payments, and this new integration eliminates the need for separate crypto platforms or custody relationships. If Ripple routes future cross-border settlements through XRP as a bridge currency, this infrastructure could generate substantial buying pressure for the token.

What Are The Key Technical And Network Drivers For XRP?

David Schwartz, Ripple's CTO Emeritus, recently updated his production node hub with XRPL version 3.2.0-b3. The upgrade, which lasted under 10 minutes, dispelled speculation regarding network inefficiencies.

The XRP Ledger Foundation added Gen3Labs as a trusted validator while removing the University of Sao Paulo to enhance network security. These maintenance activities follow the March release of rippled version 3.1.2, which fixed security issues that could cause public node outages.

On-chain data shows that XRP Ledger wallets have climbed to 8.1 million, indicating increased adoption. Daily active addresses remain robust, recently spiking to nearly 32,000 despite price weakness.

However, profitability metrics have deteriorated to 21-month lows. Only 43.4% of XRP's circulating supply is in profit at the $1.33 level, and over 56% of supply is underwater.

Market sentiment remains conflicted as spot XRP ETFs recorded their first net outflow month in March 2026. Approximately $31.16 million left the funds, followed by an additional $1.25 million in early April.

Despite these outflows, whale selling pressure appears to be diminishing. Inflows to Binance have hit their lowest levels since early 2026, reducing immediate supply available for sale.

What Are The Regulatory And Macro Catalysts To Watch?

The crypto market is currently in a historical extreme fear state, with the Fear and Greed Index below 15 for 46 consecutive days. This condition has historically signaled strong recovery opportunities as institutional accumulation continues.

Regulatory developments remain a critical wildcard. The CLARITY Act markup in late April could further unlock pension and sovereign wealth capital for the sector.

Ripple's 2025 XRP Tokyo event highlighted a forecast of $33 trillion in on-chain stablecoin volume by 2026. This projection positions the XRPL ecosystem as essential for fintech organizations integrating stablecoins.

The event also underscored broader institutional adoption trends, with participants discussing real-world asset tokenization. Partnerships with entities like SBI Holdings, which issued a blockchain bond rewarding investors with XRP, support this growth.

Maintaining momentum toward the $2 target faces significant hurdles. Approximately 60% of XRP's circulating supply was bought near $1.45, creating a heavy wall of sellers who will likely sell to break even.

Key resistance levels include the 50-day EMA at $1.40 and the $1.60 level which rejected XRP twice in March. The 200-day EMA sits near $1.90, presenting a longer-term challenge.

If the ceasefire ends without a resolution, XRP risks falling back below $1.35 to retest the $1.28-$1.30 range. The Fed signaling rate cuts will also be crucial for convincing moves above $2.