- XRP supply on exchanges has dropped from 3.95B to 2.6B in 60 days.
- Binance recorded $640M outflow of XRP equal to ETF issuer inflows.
- RSI divergence on XRP charts mirrors the 2022 cycle low pattern.
XRP trades above $2 as exchange supply drops 45% in 60 days, ETF inflows match withdrawals, and analysts assess technical breakout signals.
XRP Trades Above Key Level as Market Pulls Back
XRP is trading at $2.0540 after a strong correction. Price slipped under the mid and lower Bollinger Bands at $2.1753 and $2.0675 as trading volume rose to 1.3 million. This rise in volume showed stronger bearish pressure.
RSI (14) printed 30.88, showing that XRP is moving near oversold territory. The breakdown from the $2.20 to $2.30 range signals soft price strength. If price fails to hold near $2.05, lower support zones may be tested. Resistance remains at $2.1753.
However, XRP continues to hold above the $2 level while the wider digital asset market shows weakness. This steady price level has shaped debate around XRP’s current market value.
Supply on Exchanges Drops 45% as ETFs Accumulate XRP
In a major shift, XRP supply held on exchanges has dropped by 45% in the past 60 days. At the end of September, exchanges held 3.95 billion XRP. As of December 1, that figure has fallen to 2.6 billion.
According to analyst Darkfost, this change in supply aligns closely with ETF activity. Binance alone saw $640 million worth of XRP withdrawn, a figure matched by ETF inflows over the same period. This suggests that ETF issuers are acquiring and moving XRP into custody, reducing the available supply on retail exchanges.
Analysts See Price Consolidation and Potential Reversal Signals
Analyst RiskTake noted that XRP is forming a symmetrical triangle pattern between $2.00 and $2.30. He stated, “XRP is coiling like a spring, trading in a tight range after ETF-driven outflows.” The pattern suggests that the asset is in a consolidation phase which may lead to a breakout.
Steph Is Crypto pointed to a bullish divergence on XRP’s daily RSI, which is similar to the pattern seen in the 2022 bear market bottom. XRP is forming higher RSI lows while the price posts lower lows. She added that if this divergence holds, it could support a future price reversal.
Meanwhile, traders continue to monitor key support at $2.00 and short-term resistance levels at $2.17 and $2.30 as XRP trades in a tight range.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
