"When fewer tokens sit on exchanges, price moves get sharper. Moderate buying pressure that once moved XRP a few cents can now push it 10-15% in days. Combined with $1.37 billion in ETF inflows since November 2025, on-chain data points to a potential XRP price breakout toward $4-$5 rather than another rally that stalls below $3. Outflows began steadily, then picked up speed after October, with more than 2 billion XRP leaving centralized platforms in under 12 months."
"CryptoQuant confirms shrinking reserves on major venues such as Binance, where holdings dropped sharply into early 2026. Wallet accumulation also increased as institutional custody wallets absorbed supply tied to XRP ETF activity. Regional flows also add to the picture: Korean exchanges recorded notable withdrawals in early January, tightening available liquidity further. Together, these shifts in XRP on-chain data suggest the circulating pool is shrinking faster than traders expected."
Shrinking XRP exchange balances and ETF-driven withdrawals have concentrated available supply, making price reactions more volatile. More than 2 billion XRP left centralized platforms in under 12 months, with outflows accelerating after October and a 57% exchange balance decline. CryptoQuant data shows major venues like Binance saw sharp holdings drops into early 2026 while institutional custody wallets absorbed ETF-related supply. Regional withdrawals, notably from Korean exchanges in early January, further tightened liquidity. With exchange balances approaching the 1.5 billion range, moderate buying pressure can trigger outsized moves and increases likelihood of a breakout toward $4–$5.
Read at 24/7 Wall St.
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