XRP: Ripple Whales Withdraw Millions

What to Know:

• XRP’s exchange supply has seen a significant decrease, potentially signaling a shift in investor sentiment and accumulation by larger holders.
• Technical analysis suggests XRP is poised for a potential breakout, with short-term targets around $2.40-$2.45 and longer-term aspirations reaching as high as $22 based on historical patterns.
• Despite recent price dips, on-chain metrics and historical parallels indicate a possible resurgence for XRP, contingent on maintaining key support levels.

XRP is once again in the spotlight as on-chain data reveals a notable decrease in its supply on exchanges. This development arrives amid ongoing regulatory discussions and a broader reassessment of digital asset allocations by institutional investors. The movement of XRP off exchanges is particularly relevant for active traders and funds looking to gauge the potential for future price appreciation.

Over the past two months, the total amount of XRP held on exchanges has dropped by approximately 1.35 billion tokens. According to data shared by on-chain analysts, exchange balances have plummeted from 3.95 billion to roughly 2.6 billion XRP. This 45% reduction suggests that a substantial amount of XRP is being moved into private wallets, likely for longer-term storage. When assets are withdrawn from exchanges, it generally reduces immediate selling pressure, potentially setting the stage for future price increases if demand remains constant or increases. This dynamic is similar to what we’ve observed in Bitcoin prior to significant rallies.

The implications of this supply shift are twofold. First, it indicates that large holders, often referred to as “whales,” may be accumulating XRP, anticipating future price appreciation or participating in staking or other yield-generating activities outside of exchanges. Second, the reduced supply on exchanges could lead to decreased liquidity, potentially amplifying price swings in either direction. We saw a similar pattern in the Ethereum market leading up to the Merge, where anticipation of the event drove ETH off exchanges, contributing to increased price volatility.

Despite the decrease in exchange supply, XRP’s price has experienced some downward pressure, currently trading around $2.08, a significant drop from its July 2025 high of $3.65. This price action highlights the complex interplay between supply dynamics and broader market sentiment. Even with a reduced supply on exchanges, negative news or bearish macro trends can still weigh on price. The recent price dip underscores the importance of monitoring both on-chain data and traditional market indicators when assessing the potential for any digital asset.

From a technical analysis perspective, XRP is currently trading within a symmetrical triangle pattern on the 4-hour chart. This pattern often precedes a breakout, with the price expected to move significantly in either direction once it breaches the triangle’s boundaries. Analyst commentary suggests that a move above the upper trendline could propel XRP towards $2.40-$2.45, while a break below support could send it down to the $1.80-$1.85 range. These technical levels are crucial for traders to watch, as they can act as key areas of support and resistance.

Looking at a longer-term view, some analysts are pointing to historical patterns that suggest a much more ambitious target for XRP. By examining previous market cycles, one analyst has identified a potential price target of $22 based on Fibonacci extensions from prior moves. This target is based on the premise that XRP is currently in a similar phase to its 2017 cycle, which saw substantial price appreciation. While such long-term targets should be viewed with caution, they provide a valuable perspective on the potential upside if XRP can replicate its past performance.

However, it’s essential to acknowledge the uncertainties and risks associated with such predictions. The digital asset market is still relatively young and subject to regulatory changes, technological advancements, and shifts in investor sentiment. Moreover, past performance is not necessarily indicative of future results. Therefore, investors should conduct their own thorough research and consider their risk tolerance before making any investment decisions.

In conclusion, the recent decrease in XRP’s exchange supply, coupled with technical analysis and historical patterns, suggests a potential for future price appreciation. However, investors should remain vigilant and monitor key support levels, regulatory developments, and broader market trends. The digital asset market is dynamic and ever-changing, and success requires a balanced approach that combines fundamental analysis, technical insights, and a healthy dose of risk management.

Related: XRP Price Jump? Crypto Signals Mixed

Source: Original article