XRP Records Drop in Exchange Reserves: Price Movement Predictions

XRP Records Drop in Exchange Reserves: Price Movement Predictions

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by Giorgi Kostiuk

2 years ago

Ripple's XRP supply on exchanges has significantly decreased, which may lead to a potential supply shock and subsequent price movement in the market.

XRP Supply on Exchanges

The total number of XRP tokens on exchanges has fallen to 2.73 billion, matching the low observed in July 2023. Binance's holdings also reached 2.73 billion, down by 540 million compared to late 2024. This trend indicates that investors are moving tokens into private wallets, reflecting an interest in long-term asset storage.

Ripple's Open Interest Changes

XRP's open interest has plummeted by 70%, decreasing from about 2.5 billion dollars in late 2024 to 0.8 billion. The decline in open interest suggests diminished speculative activity. There were instances where funding rates turned negative, highlighting a bearish sentiment among traders.

XRP Price Prediction

Since the beginning of the year, XRP's price has been on a downward trajectory, starting from its first peak at $3.29. The support level at $1.98 has become critical for potential growth. If XRP can maintain above this mark, it may continue its upward trend. Conversely, breaking below $1.98 could confirm a bearish signal.

The decline in XRP supply on exchanges and changes in open interest create a complex scenario for the future of this asset. However, maintaining critical support levels will play a crucial role in determining the trajectory of XRP prices.

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