XRP Holders Withdraw from Exchanges: On-Chain Data Indicates Supply Shock

XRP is currently trading at $1.32. Although the price chart appears delicate, the underlying on-chain data presents a different perspective on its potential.

Key Takeaways

XRP shows signs of supply shock as holders withdraw significant amounts from exchanges.
On March 10, 2023, there was a notable $738 million in XRP withdrawals in just 24 hours.
XRP's on-chain data indicates that whale investments are increasing, despite institutional selling pressures.
The price resistance at $1.40 is critical, with support around the $1.27–$1.30 range.
Institutional players and ETF market dynamics are influencing XRP's price movements.

XRP crypto is showing signs of strength despite fragile pricing. Discover what on-chain data reveals about its future potential.

On-Chain Data and Market Movements

The scarcity indicator for XRP on Binance has reached 0.59, the highest level since 2024. This increase occurs as coins are rapidly withdrawn from exchanges, decreasing the available sell-side liquidity.

In a single day on March 10, around $738 million worth of XRP was withdrawn from major platforms, marking one of the largest net outflows recorded this year.

Market analysis reveals significant trends in XRP's exchange balances and price resistance.

In February alone, an impressive 7.03 billion XRP left centralized exchanges, with Binance responsible for about 3.38 billion of this total. Clearly, the supply dynamics are changing, but the price hasn’t fully reflected these shifts yet.

XRP Price Prediction: Will It Surpass $1.40?

XRP is testing the $1.40 resistance level, recognized by analysts as a crucial battleground. If the price dips below, the $1.27–$1.30 range serves as the next significant support point.

Currently, the RSI is around 42—indicating neither oversold conditions nor strong upward momentum. The 50-day EMA is positioned just above the current price, limiting any potential recovery.

The on-chain dynamics reveal an interesting scenario where whale wallets accumulated approximately 40 million XRP in March, even as U.S.-listed XRP spot ETFs—now holding a total of $1.02 billion—experienced $30.12 million in net outflows during the same period.

Data from CoinShares indicates that global XRP fund outflows reached $130 million throughout the month, showcasing a collision between institutional selling and whale accumulation at the $1.40 resistance.

Understanding the balance between whale accumulation and institutional selling in XRP.

For traders, the $1.27 level is pivotal. If XRP remains above this price, the narrative of accumulation holds strong, particularly as whales engage and ETF flows stabilize. This stabilization could ultimately facilitate a breakthrough above $1.40 if sufficient market momentum develops.

Currently, XRP appears to be in a tug of war between accumulation and selling pressure, likely oscillating between $1.27 and $1.40 until the market finds clarity. If the price breaks through the $1.27 level with substantial trading volume, the bullish setup could deteriorate quickly, leading to a deeper correction, as it would indicate that the accumulation zone is no longer respected—a scenario that outweighs any positive on-chain signals.

What distinguishes this cycle is the presence of institutional players, such as Bitwise, which holds large amounts of XRP through ETF offerings. This means that even minor outflows can adversely impact the order book, whereas Ripple continues enhancing its infrastructure, a strategic long-term move that institutional investors are closely monitoring.

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