XRP News Today: XRP Exchange Reserves Surge 20% May Signal Price Correction

XRP exchange reserves have surged to their highest point since January 2025, echoing a previous peak that led to a significant 20% price correction. This surge in reserves is a notable indicator of increased selling pressure, as more tokens are moved onto exchanges, potentially signaling upcoming sell-offs. Historical data shows that a similar spike in May 2025 preceded a 20% price correction, where XRP dropped from approximately $2.54 to $2.01 over several weeks. This pattern suggests caution for traders, as the current accumulation of XRP on exchanges could foreshadow a short-term price pullback.

Typically, rising exchange reserves precede distribution phases where holders prepare to liquidate positions. The parallel between the current reserve levels and the May 2025 peak strengthens the argument for a potential cooldown in XRP’s price momentum. Complementing the rise in exchange reserves, XRP whale transactions—transfers exceeding $1 million—have reached a three-month peak. Historical trends indicate that spikes in high-value transactions often precede distribution events, where large holders offload their assets to capitalize on local price highs. This surge in whale activity aligns closely with the exchange reserve increase, reinforcing the likelihood of a near-term correction.

The synchronization of these on-chain metrics provides a compelling case for traders to monitor XRP closely, as large-scale selling could pressure prices downward in the short term. From a technical standpoint, the recent rally from $1.90 to $3.03 places the 0.618 Fibonacci retracement level at approximately $2.34. This level is widely regarded as a critical support zone during corrections and consolidations. A decline to this price point would represent a roughly 20% pullback from current levels, mirroring the correction observed in May 2025 following a similar exchange reserve spike.

Immediate support lies at $2.80 and $2.77, with the latter corresponding to the 0.236 Fibonacci retracement level. These zones have historically provided price stability during minor pullbacks. Should XRP breach these supports, downward momentum could accelerate toward the $2.34 level. Conversely, if XRP maintains support above $2.77 and exchange reserves begin to decline, it would signal renewed accumulation and potentially invalidate the bearish outlook. In such a scenario, the token could regain upward momentum, aiming to retest the recent high near $3.03, a critical resistance level in the current market cycle.

In summary, XRP’s recent on-chain data reveals a complex interplay between rising exchange reserves and increased whale transactions, both of which historically precede price corrections. The $2.34 Fibonacci retracement level emerges as a pivotal support zone, with immediate support at $2.77 critical for maintaining bullish momentum. Traders should watch these levels closely, as a breach could trigger a short-term 20% correction, while holding support may pave the way for renewed gains. Staying informed on these metrics will be essential for navigating XRP’s evolving price dynamics.