XRP Reserve Drops to 2.75 Billion as Demand Intensifies

Although XRP has been showing mixed price action recently, with its price retracing back to levels seen before its latest rally, its exchange activity suggests that traders are still buying.

Latest exchange data provided by crypto analytics platform CryptoQuant shows that XRP is still in demand as the amount of tokens available on exchanges has declined substantially.

XRP supply shrinks

Per the data, the amount of XRP sitting on all exchanges where it is listed, including Binance, has dropped to 2,750,702,461 XRP as of Saturday, March 28.

This marks a significant decline from over 2.8 billion XRP recorded during the week, suggesting that XRP may be headed for a major price recovery this weekend.

It is important to note that the decline in the XRP exchange reserve is bullish for its potential price move as it reflects holders increasingly transferring XRP into private wallets, usually to hold. This is a key signal for increased buying activity, which could propel the price of XRP for higher surges.

Following the plummeting exchange reserve, XRP has suddenly flipped positive in its price after showing notable price declines in the previous day.

With a mild increase of 0.23%, XRP is back to trading in the green zone at $1.33 as of writing time. While sentiment had just flipped positive, this mild price increase could be the beginning of a major price breakout if the XRP buying activity continues to intensify.

XRP institutional holders still dormant

While XRP has seen better price performance so far in March, with repeated price rallies pushing its price to break key resistance zones, institutional demand has stalled for the most part of the month.

As seen in the daily XRP ETF flows, the funds have continued to record little to no new institutional capital, with consistent withdrawals from investors.

While they have recorded the lowest performance this month, the XRP ETFs are on the verge of recording their first monthly outflow since launch.