XRP Exchange Reserves Explode by 1.2 Billion in 24 Hours - Here’s Why This Spells Trouble for Prices
XRP just witnessed one of its largest single-day reserve surges in history - and traders are bracing for impact.
The Supply Floodgates Open
Exchange wallets absorbed a staggering 1.2 billion XRP tokens in mere hours. That kind of movement doesn't happen without consequences.
Why This Hurts Prices
More coins on exchanges mean more selling pressure waiting to happen. It's basic economics - when supply outstrips demand, prices drop. Traders are dumping tokens into liquid markets rather than holding in cold storage.
The Institutional Exodus
Whales and institutions appear to be positioning for exits. This isn't retail panic - this is smart money making moves. They're not accumulating at these levels.
Market Mechanics at Play
Exchange reserves act as potential selling inventory. When that inventory balloons, downward pressure follows. Simple market mechanics - the kind Wall Street 'geniuses' would charge millions to explain.
Technical Outlook Darkens
Price charts already show weakening momentum. This reserve surge could be the catalyst that breaks key support levels. Traders are watching those order books like hawks.
Remember: in crypto, exchanges aren't banks - they're liquidity pools. And right now, XRP's pool is looking dangerously deep.
XRP Exchange Reserves Increase By 1.2 Billion In Just A Day
A CryptoQuant analysis by CryptoOnchain revealed that XRP Exchange reserves jumped by 1.2 billion in a day across four crypto exchanges, with Binance leading the surge. Bithumb, Bybit, and OKX also experienced a major increase in their reserves, a development which CryptoOnchain noted shifted the volume of XRP’s reserves in an unprecedented manner.
Binance saw its reserve holdings increase from around 2.928 billion XRP to 3.538 billion XRP, an increase of over 610 million XRP in a single day. Meanwhile, Bithumb saw its holdings increase from 1.647 billion to 2.519 billion, Bybit’s holdings increased from 188 million to 380 million XRP, and OKX’s XRP reserves jumped from 112,000 to 233 million.
This development is typically bearish, as an increase in crypto exchanges’ reserves indicates that investors are offloading their coins. This would also explain why XRP has underperformed in recent times and has struggled to hold above the psychological $3 price level. During this period, other altcoins like solana and BNB have outperformed XRP, reaching new local highs.
Accumulation Rather Than Sell-offs
CryptoOnchain revealed that the increase in XRP Exchange reserves is a case of accumulation rather than the typical sell-offs. The analyst noted that the price chart indicates that this heavy accumulation occurred precisely at the key support level of around $2.73, a level that has previously prevented the altcoin from experiencing massive declines.
The analyst then pointed to the RSI and MACD indicators a day after the increase in the XRP Exchange reserves, which shows a decrease in selling pressure on the token.CryptoOnchain explained that this could mean that the heavy buying by exchanges was aimed at accumulation rather than immediate injection into the market.
CryptoOnchain also noted that the pattern of these large accumulations across the crypto exchanges and at a critical support level could be a sign of institutional coordination or an upcoming event. Notably, the XRP ETFs could launch next month, which WOULD represent a significant development for the XRP price.
The analyst stated that if the current support holds and buying volumes continue, the xrp price could rally to higher resistances at $3.34 and $3.58. However, CryptoOnchain warned that if the support is broken, selling pressure could turn the increase in XRP Exchange reserves into an opportunity for massive supply.
At the time of writing, the XRP price is trading at around $3.06, up over 2% in the last 24 hours, according to data from CoinMarketCap.
