XRP Holders Are Withdrawing Coins from Exchanges: History Indicates a Significant Shift

XRP is currently facing challenges at the $1.35 mark while the market prepares for a week of expected volatility. Notably, Binance data reveals a compelling story that the price chart has yet to fully acknowledge.

Key Takeaways

XRP's scarcity indicator has hit a high of 0.59 on Binance, the best level since 2024, indicating a reduction in the immediate supply of XRP available for sale.
Investors are choosing to withdraw XRP to private wallets rather than sell, suggesting a shift in market behavior.
A change in market participant dynamics points to a potential accumulation phase, where long-term holders replace earlier short-term sellers.
The current price of $1.35 is under pressure, but the scarcity data hints at a supportive floor underneath it.

XRP Holders Are Withdrawing Coins from Exchanges: History Indicates a Significant Shift

Supply Dynamics Indicate a Behavioral Shift

An analysis from Arab Chain highlights a significant finding amidst the present bearish trend: the scarcity indicator for XRP has reached 0.59, marking its highest point since 2024. This measurement signifies that the supply of XRP available for immediate purchase on exchanges is decreasing, as more coins are being taken off exchanges.

Investors are increasingly withdrawing their XRP to private wallets, opting for long-term holding strategies rather than engaging in immediate sales. This indicates a notable shift in market sentiment.

Historically, this scarcity indicator spent months in a negative position, recording its lowest levels during periods of intensive selling and high exchange inflows. The recent movement into positive territory—and now approaching a multi-year high—shows that sellers are receding while long-term holders are stepping into the market without selling their assets.

Are Buyers Ready to Step Up?

The implications of the rising scarcity data are profound. As the scarcity indicator climbs to its highest level since 2024, it not only reflects supply metrics but also reveals current market behaviors. The data shows that short-term sellers are diminishing, making way for a new wave of long-term holders who are quietly accumulating and withdrawing coins from exchanges.

This phenomenon is recognized in market structure analysis as an accumulation phase and is signified by the high scarcity index. As short-term selling pressure subsides, investor confidence—at least among those withdrawing coins—is on the rise, indicating a shift toward a buyer-dominated market.

However, the report emphasizes that this accumulation thesis hinges on two key conditions: overall market sentiment must continue to improve, and exchange supply needs to keep contracting. If both persist, a robust setup for a price increase could gradually develop.

The current market price of XRP, set at $1.35, reflects the ongoing dynamics. Scarcity metrics suggest that fewer investors are willing to sell at this price point.

The XRP Price Chart Shows Limited Progress

XRP is trading at $1.3510, experiencing a 1.75% increase on the day. This modest gain, which opened at $1.3279 and reached a peak of $1.3669, is minimal considering the overall damage since July.

XRP consolidates around $1.35 | Source: XRPUSDT chart on TradingView

The daily chart is clear: after reaching about $3.90 in late July 2025, XRP has followed a descending trajectory characterized by lower highs. Each rally has resulted in levels lower than the previous one, culminating in a substantial drop to $1.15 in February amid heavy trading volume. This established the current support level, which has been defended, though not yet solidified into a strong foundation.

Moving averages support the assertion of structural damage. The 50-day moving average has dropped below the 100-day moving average, indicating a bearish trend. Both are currently trending down towards the $1.60–$1.80 range, while the 200-day moving average continuously declines from approximately $2.10, a distance that indicates reclaiming this level is a longer-term goal.

Although today’s candle is somewhat positive, the overall trend remains concerning. For XRP to establish a base rather than continue trending downward, it will need to close above $1.45 in daily trading.

Charts from TradingView.com