XRP Crypto Holders Withdraw Coins from Exchanges, On-Chain Data Indicates Supply Shock
XRP is currently trading at $1.32, showing moderate gains of about 2.12% in the market. While the price chart might appear fragile at first glance, underlying on-chain data reveals significant activity that points toward a supply shock in the XRP ecosystem.
Significant Withdrawals from Exchanges Signal Scarcity
Data from CryptoQuant shows that XRP’s scarcity indicator on Binance has recently hit 0.59—its highest level since early 2024. This metric suggests a notable reduction of XRP tokens held on exchanges as holders move their coins off trading platforms. The withdrawals are substantial: on March 10 alone, approximately $738 million worth of XRP left major exchanges within a 24-hour period. Analysts have described this as one of the largest single-day net outflows of XRP seen this year.
In February, decentralized exchange withdrawals totaled roughly 7.03 billion XRP, with Binance accounting for nearly half of this figure at 3.38 billion XRP. This movement points to a fundamental shift in supply dynamics, mechanically compressing the pool of XRP available for sale on centralized venues.
Price Action and Key Levels to Watch
XRP is currently pressing against a critical resistance zone near $1.40, an area that analysts have identified as a key battleground for further price advances. Beneath this, a support cluster in the $1.27–$1.30 range is closely watched by traders and investors alike.
The daily Relative Strength Index (RSI) hovers near 42, indicating that the asset is neither overbought nor oversold, and does not currently suggest strong momentum in either direction. The 50-day Exponential Moving Average (EMA) sits slightly above the current price, capping intraday recovery attempts.
As long as XRP’s price holds above the $1.27 support level, the story of accumulation remains intact. This is especially relevant given the continued buying activity by whale wallets, which have collectively accumulated around 40 million XRP during March, even as retail and institutional investors have shown signs of selling pressure.
Institutional Activity Adds Complexity
US-listed XRP spot Exchange-Traded Funds (ETFs), which now manage over $1.02 billion in combined assets, have seen net outflows totaling $30.12 million during the same timeframe. Global data from CoinShares shows even larger XRP fund outflows, totaling $130 million for March. This suggests a tug of war between institutional selling and whale wallet accumulation, both converging near the $1.40 resistance.
This dynamic creates a complex market environment where accumulation and sell pressure are clashing. If XRP’s price maintains above $1.27, momentum may build toward a breakout above $1.40. However, a clean break below $1.27 with volume could undermine the accumulation narrative, potentially leading to a deeper price pullback.
Long-Term Implications and Ripple’s Strategic Position
What sets the current cycle apart is the involvement of institutional players with large XRP holdings via ETF products. Even minor outflows from these funds can add significant sell pressure on the order books. Meanwhile, Ripple continues to expand its infrastructure and business development, laying a foundation that could attract long-term investors looking to capitalize on future growth.
With whales accumulating tokens and Ripple strengthening its ecosystem, XRP may be poised for a meaningful price move, provided market conditions align.
Market Snapshot
- Bitcoin (BTC): $66,981.51 (+1.28%)
- Ethereum (ETH): $2,063.68 (+1.70%)
- Solana (SOL): $80.05 (+2.45%)
- PEPE: $0.0000034 (+5.45%)
- Shiba Inu (SHIB): $0.0000060 (+4.16%)
- Dogecoin (DOGE): $0.091 (+1.98%)
- XRP: $1.32 (+2.12%)
- Ethereum Gas Fees: 0.18 gwei
Conclusion
XRP holders withdrawing large amounts of coins from exchanges suggest a supply shock that could constrain selling pressure and set the stage for future price appreciation. The interplay between whale accumulation and institutional outflows creates a precarious balance, with critical price levels around $1.27 and $1.40 shaping near-term market direction. Investors would do well to watch these developments closely for clues about XRP’s next major move.
Author: Ahmed Balaha, CryptoNews
Last updated: March 31, 2026