XRP Flashes Bullish Signal as Exchange Balances Drop 3.36%

On-chain metrics point to a 3.36% decline in XRP exchange reserves since early October — a historically bullish indicator often linked to long-term accumulation by large holders.

Price Action and Market Context

XRP traded within a tight $0.05 range on Tuesday, fluctuating between $2.38 and $2.41, as institutional flows supported accumulation above key structural support at $2.38. Despite broader market indecision, the token maintained a steady consolidation pattern, with repeated rejections near $2.43 resistance capping short-term momentum.

Trading volumes spiked to 79.86 million, roughly 94% above the 24-hour average, during a midday support retest — a move widely interpreted as evidence of institutional participation. The rebound from $2.38 underscored ongoing whale-led accumulation, even as retail activity remained subdued.

Intraday Performance

The session’s most active phase occurred midday, when sellers briefly pushed XRP toward the $2.38 base before strong dip-buying reversed losses. The subsequent recovery to $2.41 restored the prior consolidation structure, keeping price action confined within a narrow 2% intraday range.

Hourly data confirmed a mild upward bias, with XRP rising from $2.397 to $2.405 around 01:47 on elevated volume. A series of higher lows along this stretch reinforced the developing short-term bullish channel, despite mixed sentiment across broader crypto markets.

Technical Overview

XRP’s price structure continues to trace an ascending channel, supported by a sequence of higher lows and controlled accumulation behavior. The $2.38–$2.39 zone remains a critical support area, validated by repeated volume surges during tests. Resistance holds near $2.43, where multiple rejections define the upper boundary of the current range.

Derivatives data reflect waning speculative appetite: open interest declined 1.4%, while trading volumes fell 24% from the previous day. Funding rates turned slightly negative at -0.0007%, suggesting short-leaning sentiment. Even so, the continued drop in exchange balances strengthens the bullish long-term accumulation narrative.

What Traders Are Watching

XRP’s ability to hold above $2.38 remains central to maintaining the accumulation thesis. A confirmed breakout above $2.43–$2.48 could reset short-term momentum and open the path toward the $2.65 extension zone.

Conversely, failure to defend $2.38 may invite a deeper retracement toward $1.96 support.
Market participants are closely watching volume behavior — another 80M+ surge on an upward move could confirm institutional accumulation and signal the onset of a volatility expansion phase.