XRP Crypto Holders Withdraw Coins from Exchanges, Indicating a Supply Shock According to On-Chain Data
The cryptocurrency market has seen notable activity in XRP, the native token of the Ripple network, as investors increasingly pull their coins off centralized exchanges. This trend has sparked discussions around a potential supply shock that could impact XRP’s price dynamics in the near term.
On-Chain Data Highlights Increased Withdrawals
Despite XRP trading at approximately $1.32—a figure that appears relatively fragile on the price charts—the underlying on-chain data suggests a very different narrative. Data sourced from CryptoQuant reveals that XRP’s scarcity indicator on Binance, the largest cryptocurrency exchange by volume, reached 0.59, marking the highest reading since early 2024. This indicator reflects a significant decrease in the available sell-side supply as coins are withdrawn from exchanges and moved into private wallets or custody. On March 10 alone, a staggering $738 million worth of XRP exited major trading platforms within just 24 hours. Analysts have described this as one of the largest single-day net outflows seen in 2026 so far.
February’s data further corroborates this trend, with a total of 7.03 billion XRP leaving centralized exchanges. Binance alone accounted for approximately 3.38 billion of these withdrawn tokens, underscoring a substantial redistribution of the supply away from easily tradable reserves.
Price Resistance and Support Levels
XRP is currently pressing against a critical resistance zone around $1.40. Industry analysts have flagged this level as a pivotal battleground for price direction. Below this, the $1.27 to $1.30 range acts as an important support cluster. The relative strength index (RSI) for XRP is around 42 on the daily chart, indicating neither overbought nor oversold conditions—a sign of indecision in the market.
Technical analysis reveals that the 50-day exponential moving average (EMA) is positioned just above the current spot price, which has capped attempts for a strong intraday recovery. This technical resistance, combined with supply tightening, creates an environment of heightened tension.
Institutional Selling vs. Whale Accumulation
A closer look at on-chain activity presents a compelling tale of opposing forces. In March, whale wallets accumulated roughly 40 million XRP, signaling strong interest from large private holders. Concurrently, US-listed XRP spot ETFs experienced net outflows totaling approximately $30.12 million, with wider institutional funds withdrawing an estimated $130 million globally according to CoinShares data.
This juxtaposition between institutional selling and whale accumulation highlights a turbulent tug of war positioned largely around the $1.40 price point. Institutional investors, through ETF products such as those managed by Bitwise, control significant XRP holdings. Even modest outflows from these funds can materially impact sell pressure on the order books.
What Lies Ahead for XRP
The crucial technical level to watch is $1.27. Maintaining price stability above this support reinforces the ongoing accumulation narrative, especially given the active role of whale investors and the recent stabilization of ETF flows. If momentum builds from this base, XRP could potentially breach the $1.40 resistance and move to higher price levels.
On the other hand, a decisive break below $1.27 on high volume might unravel the current setup, leading to a more pronounced price correction. A breach of this support would indicate that the accumulation zone is no longer sustainable, sidelining on-chain signals favoring scarcity.
Long-Term Outlook Supported by Ripple’s Infrastructure
What sets this cycle apart is the involvement of institutional layers and the continued development work by Ripple. The company’s ongoing infrastructure expansion is widely view as a key long-term factor that institutional investors appear to be positioning ahead of. This combination of supply compression on exchanges, whale support, and strategic institutional inflows may create a robust foundation for XRP’s future price appreciation.
Market Snapshot
As of the latest update, XRP’s price sits near $1.30, down 4.00% on the day. Other major cryptocurrencies are also experiencing declines: Bitcoin (BTC) at $66,346.74 (-3.32%), Ethereum (ETH) at $2,034.10 (-4.80%), and Solana (SOL) at $78.58 (-5.72%). The broader cryptocurrency market cap currently stands at roughly $2.39 trillion, down 0.26% over the past week.
Conclusion
The recent withdrawal of XRP from exchanges signals potentially significant supply tightening, a development that usually precedes notable price moves. Although the price action currently shows consolidation between $1.27 and $1.40, the interplay between institutional selling and whale accumulation positions XRP at a critical juncture. Traders and investors should closely monitor these technical levels and on-chain metrics to anticipate the next phase of XRP’s market behavior.
Author: Ahmed Balaha – Crypto journalist focused on blockchain technology, DeFi, AI, and digital assets.
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