The recent surge in XRP has indeed attracted a lot of attention. The price has increased by 27% over the past seven days, and today alone, it skyrocketed by 10%, directly trending on social media. What exactly is driving this rally?

**Institutional Funds and ETF Expectations Battle**

Although the SEC's stance on spot ETFs remains cautious, market-savvy institutional funds have long been unable to hold back. Large-scale institutional buying has directly changed the market distribution of chips, causing the circulating supply to tighten sharply. This supply shortage naturally pushes prices higher—classic supply shortage price increase logic.

**Technical Indicators Show Strong Signals**

Trading volume has significantly increased, and the price has broken through previous key resistance levels. The candlestick patterns also demonstrate perfect breakout characteristics. In the short term, the bulls are basically in control of the momentum.

**But Risks Cannot Be Ignored**

The progress of ETF approval still carries uncertainty, and policy changes could happen at any time. More importantly, the current rapid increase in price is accelerating the risk of technical corrections. If you want to participate, it is recommended to observe whether the key resistance level at $2 can be effectively supported, serving as an important reference for subsequent actions. Although the gains are tempting, chasing the high requires caution.