XRP continues to show mixed signals as market volatility persists, but on-chain data reveals a significant drop in exchange reserves, hinting at persistent demand. According to CryptoQuant, the XRP exchange reserve fell from 2,744,841,237 XRP to 2,709,389,071 XRP in just 24 hours, representing a decrease of over 35 million tokens and a 1.29% decline in the total reserve. This decline is widely interpreted as a sign of increased buying activity, as tokens being moved off exchanges typically indicate accumulation rather than selling pressure.
The notable outflow comes despite XRP’s prolonged price slump. The token is currently trading at $1.33, down 5.43% over the past week, and recently retested the $1.31 level. Market analysts believe that traders are capitalizing on the price weakness, using it as an opportunity to buy the asset at cheaper prices ahead of a potential major breakout. The contrasting on-chain activity suggests that under the surface, demand for XRP remains robust even as short-term price action remains bearish.
