Massive XRP Withdrawals Signal Market Shift
Recent data from CryptoQuant reveals an unprecedented $12.4 billion withdrawal of XRP from exchanges like Binance and Upbit over the past week. A staggering 5.736 billion XRP tokens (nearly 10% of circulating supply) exited reserves, sparking speculation about an impending supply squeeze.
Key Highlights:
- Upbit’s reserves dropped by 5 billion XRP (from 6.069B to 1.08B).
- Binance lost 617 million XRP (2.855B to 2.238B).
- Smaller outflows observed on Bybit (127M) and Bitfinex (3.15M).
👉 Explore real-time XRP market trends
What’s Driving the Exodus?
Analysts suggest three potential catalysts:
- Technical Rebalancing: Possible internal adjustments by exchanges.
- Cold Storage Moves: Investors transferring tokens offline amid bullish sentiment.
- ETF Anticipation: Growing speculation around spot XRP ETFs, especially after Canada’s Purpose XRP ETF amassed C$32M AUM shortly after launch.
Market Sentiment and Derivatives Data
- Trading Volume: Fell 56.82% to $4.11B.
- Open Interest: Rose 1.09% to $3.79B, indicating position holding.
- Options Activity: Volume down 53%, but open interest up 20.83% ($673.27K).
Technical Outlook for XRP
- RSI: Neutral at 49.42.
- MACD: Recently turned positive.
- Price Action: Holding above 200-day SMA but facing resistance at 50-day SMA (~$2.23).
- Current Price: $2.19 (24-hour volume: $2.71B).
👉 Stay updated on XRP’s price movements
FAQs: Addressing Key Questions
Q: Could this outflow trigger an XRP price surge?
A: Large withdrawals reduce sell-side pressure, potentially leading to a supply shock if demand rises.
Q: Is Upbit’s 5B XRP outflow a glitch?
A: Unconfirmed—could reflect user behavior or exchange rebalancing.
Q: How does the Canadian ETF impact XRP?
A: Success may pressure the U.S. SEC to approve similar products, boosting institutional interest.
Long-Term Implications
While short-term metrics show cooling activity, the Canadian ETF’s early success and withdrawal trends suggest accumulating bullish momentum. Analysts like Remi Relief predict targets of $25–$75 if supply tightens further.
Disclaimer: This content is for informational purposes only. Conduct independent research before investing.