XRP Exchange Reserves Plummet: Is a Supply Shock on the Horizon?

In a dramatic shift, XRP balances on major exchanges like Upbit, Bitstamp, and Binance have seen a drastic decline over the past week. Upbit's reserves dropped from 60-65 billion XRP to around 18 billion, while Bitstamp's holdings fell from 50-60 million to just 9.8 million. Binance, though not fully detailed in reports, appears to follow the same trend. This significant outflow has sparked speculation about large-scale accumulation or strategic repositioning by institutional players or whales. Despite the reduced supply on exchanges, XRP's price has only experienced a minor dip, suggesting strong underlying demand. Analysts are now debating whether this could lead to a supply shock, potentially driving prices higher in the near future. The current developments highlight the growing interest and confidence in XRP as a key player in the cryptocurrency market.

XRP Exchange Reserve Drops Drastically; Supply Shock Incoming?

XRP balances on major exchanges—Upbit, Bitstamp, and Binance—have plummeted over the past week, sparking speculation about large-scale accumulation or strategic repositioning. Upbit's reserves collapsed from 60-65 billion XRP to roughly 18 billion, while Bitstamp's holdings dwindled from 50-60 million to 9.8 million. Binance, though not fully detailed in reports, mirrors the trend.

Despite the outflow, XRP's price dipped only modestly to $2.16, suggesting the tokens weren't dumped on spot markets. Analysts attribute the movement to OTC deals or cold storage, signaling bullish long-term positioning. "When supply leaves exchanges, it’s often a prelude to tighter markets," noted one trader.

Why XRP Makes Sense For Long-Term Investors

XRP's current trading price of around $2, coupled with daily volumes nearing $4 billion, raises questions about its long-term viability. The cryptocurrency distinguishes itself through real-world utility, regulatory clarity, and institutional interest.

The XRP Ledger processes payments in 3–5 seconds, offering energy efficiency superior to proof-of-work blockchains. Ripple's integration of XRP into CBDC pilots and cross-border remittances creates sustainable demand, shifting focus from speculation to adoption-driven value.

Regulatory uncertainty, once a major hurdle, has diminished following a 2023 U.S. court ruling that XRP is not a security. The SEC's decision to pause appeals further solidifies this clarity, removing a critical risk factor for investors.

Institutional adoption looms large, with XRP spot ETFs facing 70–88% approval odds by late 2025. Conservative estimates project prices reaching $4–5, while bullish scenarios suggest $8+ if ETF access unlocks large-scale capital inflows.

XRP Poised for Breakout as Symmetrical Triangle Nears Resolution

Market technician EGRAG crypto has identified a critical juncture for XRP, with the cryptocurrency's prolonged symmetrical triangle pattern approaching a potential breakout. The pattern, forming since November 2024, has confined XRP's price action between descending resistance and ascending support levels.

Two previous breakout attempts failed—first at January's $3.4 peak, then during March's $3 rally. EGRAG's mathematical analysis suggests resolution could come as early as July or September, with the analyst emphatically stating "The Breakout Is Coming." The outcome will determine whether XRP resumes its bullish trajectory or faces further consolidation.

Ripple vs SEC Lawsuit Update: New Ruling Expected, But It Won’t Decide XRP’s Future

The protracted legal clash between Ripple and the U.S. Securities and Exchange Commission is nearing another procedural milestone. Speculation about an imminent final ruling has been dispelled by legal expert Bill Morgan, who clarified that the pending decision involves an "indicative ruling" on penalty reductions and institutional sales restrictions—not a reclassification of XRP's legal status.

Judge Analisa Torres' landmark July 2023 summary judgment remains intact, preserving the precedent that XRP transactions on secondary markets don't constitute securities offerings. Market observers had mistakenly anticipated this procedural step might redefine crypto asset classification nationwide.

Contrary to social media rumors, no new settlement figures have emerged. The previously reported reduction from $125 million to $50 million reflects terms already agreed upon by both parties. This development underscores the incremental nature of high-stakes regulatory litigation, where procedural motions are often misinterpreted as substantive breakthroughs.

XRP Supply Shock Looms as Major Exchanges Witness $12.4B Reserve Drain

XRP reserves across top cryptocurrency exchanges have plummeted by $12.4 billion in a single week, signaling potential supply constraints. Binance and Upbit led the outflow, with 5.736 billion XRP withdrawn from platforms—equivalent to nearly 10% of the token's circulating supply.

The sudden exodus comes amid XRP's prolonged consolidation around $2, suggesting renewed investor confidence. South Korea's Upbit, which held over 6 billion XRP earlier this month, saw the most significant withdrawals according to CryptoQuant data.

Market analysts interpret the movement as institutional accumulation, with exchange reserves dropping to multi-year lows. At current prices, the withdrawn tokens represent enough liquidity to potentially catalyze significant price volatility.

3iQ CEO Highlights Global Pricing Edge for XRP ETF Investors

Pascal St-Jean of 3iQ Digital Asset Management revealed institutional advantages of their XRP ETF (XRPQ), claiming retail investors cannot access comparable pricing. The fund sources XRP through global liquidity networks, securing bulk rates before storing assets in cold storage for precise spot tracking.

"No retail advisor or investor could ever buy XRP at the price we're getting globally," St-Jean told Crypto Eri, emphasizing the ETF's institutional-grade execution. The physically backed structure has outperformed rivals since its Toronto Stock Exchange debut.