XRP price spikes 5% adding $4 billion to its market cap in a day

XRP price has rebounded nearly 5% during the past 24 hours to trade at about $1.40 on Tuesday, March 10, 2026.

The large-cap altcoin posted a 14% uptick in its daily average trading volume to hover about $2.42 billion, according to crypto market data platform CoinMarketCap.

As a result, the coin’s market cap surged by $4 billion to hover around $86.69 billion at press time.

Top reasons why XRP price gained today

The primary reason why XRP price rebounded today was due to the macro crypto rally led by Bitcoin (BTC). Amid the easing geopolitical tensions, the total crypto market cap gained 3.72% to hover around $2.41 trillion.

This altcoin has also registered a gradual increase in its Open Interest (OI), as evidenced by data from CoinGlass. Since March 2, its OI surged from $2.16 billion to hover about $2.39 billion, signaling renewed interest from traders.

Most importantly, the altcoin’s exchange reserves have dropped from over 2.767 billion on March 4, to around 2.725 billion at press time, according to data from CryptoQuant. Historically, a declining supply of a coin or token on crypto exchanges is perceived as bullish and vice versa.

From a technical analysis standpoint, the XRP/USD pair in the 4-hour timeframe has signaled further bullish momentum. Furthermore, the Bollinger Bands have been squeezing in the past five weeks, and a breakout has potentially formed.

Cautionary note for crypto buyers

Amid the rising optimism for a rebound, the U.S. spot XRP Exchange-Traded Funds (ETFs) have been bleeding during the past three days. On Monday, the U.S. spot XRP ETFs registered a net cash outflow of about $18.11 million.

A rising cash outflow on its ETFs amid a cumulative long position could be a recipe for a long squeeze. Moreover, the coin’s price has been trapped in a macro falling trend, catalyzed by panic sellers due to its high unrealized losses.