XRP has been really hot these days—surging 12% in 24 hours, once reaching close to $2.4, becoming the most resilient asset in the entire market. This rally didn't come out of nowhere; let's take a look at the underlying logic.

Major institutions have indeed taken aggressive actions this time. Spot ETF investments alone poured in $46.1 million in a single day, representing real incremental capital. Meanwhile, XRP reserves on exchanges have fallen to an eight-year low, indicating tightening market liquidity. On one side, institutional buy orders on the demand side; on the other, scarcity expectations on the supply side. When these forces align, the market moves.

Looking at on-chain data again, the large holder long-short ratio has risen to 2.26, and the average holding cost is around $2.12—what does this mean? Large funds have already set up their positions and are now in profit. The market's biggest fear is the atmosphere of "the wealthy have all bet correctly," which can attract follow-on capital. However, it's also worth noting that on the hourly chart, the RSI is approaching the overbought zone, and in the short term, there may be pressure from profit-taking.

From a broader perspective, XRP's recent performance also reflects a more noteworthy phenomenon: as regulatory frameworks become clearer, traditional institutions are systematically scanning for crypto assets that have real use cases and are compliant. This "reassessment of compliance" logic could continue to influence capital flows in the upcoming cycles.