XRP Exchange Reserves Balloon 1.2 Billion In One Day, Why This Is Bearish For Price

Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing How Our News is Made Strict editorial policy that focuses on accuracy, relevance, and impartiality Ad discliamer Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. XRP Exchange reserves have surged by 1.2 billion in just a day, presenting a bearish outlook for the XRP price. This development comes as the token looks to hold above the psychological $3 level.  XRP Exchange Reserves Increase By 1.2 Billion In Just A Day

A CryptoQuant analysisby CryptoOnchain revealed that XRP Exchange reserves jumped by 1.2 billion in a day across four crypto exchanges, with Binance leading the surge. Bithumb, Bybit, and OKX also experienced a major increase in their reserves, a development which CryptoOnchain noted shifted the volume of XRP’s reserves in an unprecedented manner.  Related Reading XRP Exchange Reserves Balloon 1.2 Billion In One Day, Why This Is Bearish For Price 10 hours ago

Binance saw its reserve holdings increase from around 2.928 billion XRP to 3.538 billion XRP, an increase of over 610 million XRP in a single day. Meanwhile, Bithumb saw its holdings increase from 1.647 billion to 2.519 billion, Bybit’s holdingsincreased from 188 million to 380 million XRP, and OKX’s XRP reserves jumped from 112,000 to 233 million.  Source: Chart from CryptoQuant

This development is typically bearish, as an increase in crypto exchanges’ reserves indicates that investors are offloading their coins. This would also explain why XRP has underperformed in recent times and has struggled to hold above the psychological $3 price level. During this period, other altcoins like Solana and BNB have outperformed XRP, reaching new local highs. Accumulation Rather Than Sell-offs

CryptoOnchain revealed that the increase in XRP Exchange reserves is a case of accumulation rather than the typical sell-offs. The analyst noted that the price chart indicates that this heavy accumulation occurred precisely at the key support levelof around $2.73, a level that has previously prevented the altcoin from experiencing massive declines.  Related Reading XRP Price Setting Up For Next Leg With Expected Targets Reaching $19.27 3 days ago

The analyst then pointed to the RSI and MACD indicators a day after the increase in the XRP Exchange reserves, which shows a decrease in selling pressure on the token.CryptoOnchain explained that this could mean that the heavy buying by exchanges was aimed at accumulation rather than immediate injection into the market. 

CryptoOnchain also noted that the pattern of these large accumulations across the crypto exchanges and at a critical support level could be a sign of institutional coordination or an upcoming event. Notably, the XRP ETFscould launch next month, which would represent a significant development for the XRP price. 

The analyst stated that if the current support holds and buying volumes continue, the XRP price could rallyto higher resistances at $3.34 and $3.58. However, CryptoOnchain warned that if the support is broken, selling pressure could turn the increase in XRP Exchange reserves into an opportunity for massive supply. 

At the time of writing, the XRP price is trading at around $3.06, up over 2% in the last 24 hours, according to datafrom CoinMarketCap. XRP trading at $3.04 on the 1D chart | Source: XRPUSDT on Tradingview.com Featured image from Adobe Stock, chart from Tradingview.com