XRP Accumulation Signals Strength, but Price Struggles to Advance

XRP is seeing record outflows from exchanges, tightening available supply, yet the price remains near $1.34. The disconnect between shrinking liquidity and muted price action suggests accumulation is underway, but momentum has not yet materialized.

Market Snapshot

• XRP rose to $1.34, with trading volume 29% above its weekly average.
• February saw 7.03 billion XRP exit exchanges, compressing supply.
• Binance scarcity indicator climbed to 0.59, the highest since 2024.

Price Activity

• XRP has been confined to a $1.33–$1.34 range, repeatedly testing resistance.
• Buyers defended dips near $1.31, forming higher lows, though breakout attempts stalled.
• Late-session buying was steady but lacked follow-through.

Technical Takeaways

• Supply is tightening, but price expansion remains limited, indicating sellers are still active.
• Elevated volume without upward movement points to positioning rather than strong conviction.
• Such compression often precedes a decisive directional move.

Key Levels

• Resistance: $1.34–$1.35, breaking which could open the way toward $1.42.
• Support: $1.31–$1.32, crucial for maintaining market structure.
• Stalling near current levels despite shrinking supply may signal continued overhead selling.