While the broader cryptocurrency market rallies, XRP has struggled to keep pace, repeatedly failing to breach key technical resistance levels. Beneath this surface-level price stagnation, however, a significant shift is occurring: billions of tokens are being withdrawn from trading platforms. Investors are now weighing whether the current price weakness is a cautionary signal or if the substantial reduction in available supply could precede a major trend reversal.
Exchange Withdrawals Signal Long-Term Holding
Fundamental on-chain data presents a stark contrast to the short-term price action. The amount of XRP held on centralized cryptocurrency exchanges has plummeted dramatically in recent weeks. According to metrics from Glassnode, reserves have fallen by approximately 45% in under 60 days, with over one billion tokens moved off public trading venues.
This scale of movement typically points to activity beyond retail investors. It strongly suggests liquidity is being shifted into private wallets, custody solutions, or over-the-counter (OTC) trading desks. Market participants often interpret this as an indicator of long-term accumulation, as these tokens are effectively removed from the immediate sell-side pressure of exchange order books.
Price Action Confined to a Narrow Range
XRP’s attempt to decisively break through the stubborn $2.12 resistance level failed notably on Tuesday. Despite a substantial surge in trading volume—nearly 38% above the weekly average—the price was sold off sharply after a brief spike to $2.17. Analysts frequently view this pattern as a sign of distribution, where larger holders use rising price liquidity to exit positions.
Currently trading around $2.09, XRP sits roughly 3% below its level from the previous week. The price has become compressed within a tight corridor between $2.08 and $2.17, where buyers and sellers are battling for control. A sustained drop below the psychologically significant $2.09 mark could pave the way for a test of the next major support at $2.00.
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Institutional Interest and Network Activity Rise
Parallel to the supply contraction, U.S.-listed XRP exchange-traded funds (ETFs) are seeing consistent inflows. These products, led by the Canary XRP ETF and the Grayscale XRP Trust, are collectively approaching $1 billion in assets under management. This trend is bolstered by a regulatory environment that is increasingly facilitating entry into the crypto sector for banks and payment service providers.
Simultaneously, the network’s “velocity,” a metric gauging how frequently tokens change hands, has reached its highest point in 2025. This indicates that while the XRP ledger is active and tokens are circulating, they are increasingly flowing away from easily accessible exchange wallets.
Technical Setup Nears a Resolution
The technical picture is converging within a symmetrical triangle pattern. The drastically reduced supply on exchanges could act as a powerful catalyst in the event of a breakout. Should rising demand meet a significantly depleted order book, the conditions would be ripe for a volatile price move.
For a bullish resolution, XRP must conclusively overcome the resistance zone between $2.12 and $2.15. Conversely, a breakdown below the $2.00 support level would likely see the current short-term weakness persist. The market is now watching to see which force will prevail: the technical selling pressure or the fundamental supply shock.
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