XRP Drops 18%, But Exchange Supply Hits Multi-Year Lows—Is a Bullish Breakout Brewing?
Despite shedding over 18% in recent weeks, XRP may be quietly setting the stage for a bullish turnaround. After peaking above $3.40 earlier this year, XRP has slipped to $2.06—mirroring broader market fatigue—but on-chain signals and institutional interest are telling a deeper story.
On-Chain Activity Cools, But Price Holds Ground
According to new insights from CryptoQuant analyst EgyHash, XRP is experiencing a market paradox: a dramatic slowdown in on-chain and derivatives activity, yet a relatively moderate price correction. XRP Ledger activity has plunged by over 80%, and open interest in futures markets has dropped 70%, suggesting waning speculative demand.
Yet, XRP’s price has only declined ~35% from its local highs—far outperforming majors like Ethereum, which saw a 60% retracement. What’s supporting this price resilience?
A Shrinking Exchange Supply Signals Accumulation
One key factor is XRP’s declining Exchange Reserve, which has now reached levels last seen in July 2023. This means fewer tokens are available for immediate selling pressure—a dynamic that often precedes bullish moves. Combined with lower leverage and stabilized funding rates, the setup hints at reduced volatility and growing conviction from longer-term holders.
EgyHash points to this as a potential sign of strength beneath the surface—a cooling market that could be readying for a fresh move higher.
Institutional Momentum Is Building
Beyond on-chain signals, XRP is gaining traction on the institutional front. Hong Kong-based HashKey Capital has launched the HashKey XRP Tracker Fund, the first XRP-focused investment vehicle in Asia, backed by Ripple itself. The fund is expected to evolve into a full-fledged ETF, creating a new gateway for institutional capital to enter the XRP ecosystem.
This is more than just a product launch—it’s a strategic play to strengthen XRP’s market credibility and appeal to larger investors.
The Bottom Line
While XRP’s recent decline reflects broader market sentiment, the fundamentals suggest a shift may be underway. A reduced exchange supply, resilient pricing, and growing institutional interest could position XRP for a notable rebound in the months ahead.
Smart money isn’t chasing the hype—it’s watching the signals. And right now,
XRP is quietly sending some interesting one.
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