XRP, a popular cryptocurrency, is currently trading at $1.32. Despite a seemingly fragile price chart, the on-chain data reveals a different story. The scarcity indicator for XRP on Binance has reached 0.59, its highest level since 2024. This surge is attributed to coins leaving exchanges at a rapid pace, leading to a reduction in the available sell-side pool.
In a significant move, around $738 million worth of XRP was withdrawn from major platforms in just one day on March 10, marking one of the largest single-day net outflows this year. Throughout February, a total of 7.03 billion XRP left centralized exchanges, with Binance alone accounting for approximately 3.38 billion of that volume. This shift in supply dynamics has not been fully reflected in the price yet.
Currently, XRP is testing the $1.40 resistance level, which analysts consider a crucial battleground. Below this, the $1.27–$1.30 range serves as a key support zone. The Relative Strength Index (RSI) on the daily chart is hovering around 42, indicating a neutral stance. The 50-day Exponential Moving Average (EMA) is acting as a resistance level, limiting intraday recovery attempts.
The divergence between on-chain data and market dynamics is evident. While whale wallets have accumulated around 40 million XRP in March, US-listed XRP spot ETFs have witnessed net outflows totaling $30.12 million. Global XRP fund outflows for the month stand at $130 million. This clash between institutional selling and whale accumulation is happening directly at the $1.40 price point.
The chart indicates that $1.27 is a critical level to watch. If the price remains above this point, the accumulation narrative remains intact. However, a clean break below $1.27 with substantial volume could lead to a more significant pullback, disregarding the accumulation zone.
What sets this cycle apart is the institutional involvement, with entities like Bitwise holding substantial XRP through ETF products. Even minor outflows can impact the order book significantly. Meanwhile, Ripple continues to expand its infrastructure in the background, a long-term narrative that institutional players typically anticipate.
In conclusion, the current scenario for XRP involves a tug of war between accumulation pressure and selling pressure. The market is likely to oscillate between $1.27 and $1.40 until a clear direction emerges. Any decisive move below $1.27 may signal a deeper correction, while sustained accumulation and institutional interest could pave the way for further upside potential.
The original post titled “XRP Crypto Holders Pull Coins Off Exchanges, On-Chain Data Signals Supply Shock” was originally published on Cryptonews.
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