XRP News Today: XRP Exchange Holdings Hit 5.66% Monthly Low as Investors Shift to Long-Term Holding

Digital asset XRP has shown signs of potential upward movement as the percentage of its circulating supply held on centralized exchanges has dropped to a monthly low of 5.66%, according to blockchain analytics firm Glassnode [1]. This represents a 3% decline since August 9, signaling a shift in investor behavior from short-term trading to longer-term holding strategies. The reduced availability of XRP for immediate selling is often interpreted as a precursor to price appreciation, particularly in markets where liquidity is a key factor in price movement.

The decline in exchange holdings coincides with XRP’s recent consolidation between $3.11 and $3.34, a range it has held despite broader cryptocurrency market declines. On-chain data suggests that investors are increasingly moving their holdings off exchanges, which typically indicates a growing confidence in the asset’s long-term potential [1]. This trend is supported by technical indicators pointing to potential bullish momentum if the token can break above the $3.34 resistance level.

Liquidation data from Coinglass further reinforces the bullish case for XRP. A concentrated cluster of leveraged positions exists around the $3.4 price level, which has historically acted as a "price magnet" due to the buying pressure generated by the forced closure of leveraged trades [1]. Market participants often look to these levels as potential turning points, where the movement of price toward a liquidation zone can trigger a short-term reversal or acceleration.

Technical analysis also suggests a potential upside target of $3.66 if XRP successfully breaks through the $3.34 resistance. This level aligns with previous support and resistance zones in XRP’s price history and represents a roughly 10% gain from the current upper boundary of its consolidation range [1]. The token’s ability to maintain support above $3.11 during recent market volatility further demonstrates relative strength compared to other digital assets, which is a positive sign for its near-term prospects.

However, the bullish case is not without risks. A failure to hold above $3.11 could result in renewed selling pressure and potentially push the price below the $3.00 level, which would undermine the current accumulation narrative [1]. Broader market conditions, regulatory developments, and macroeconomic factors could also influence XRP’s price action, particularly in a market that remains sensitive to external shocks.

The decline in exchange-held balances is part of a larger trend in the cryptocurrency market, where tokens are increasingly being moved into private wallets and cold storage. This shift reduces the immediate supply available for trading, which can lead to tighter bid-ask spreads and a more stable price environment. For XRP, this trend appears to be gaining momentum, with market analysts noting the growing likelihood of a breakout should current technical conditions persist.

In summary, XRP’s recent on-chain activity and technical positioning suggest that the altcoin may be setting up for a potential upward move following its extended consolidation phase. The combination of reduced exchange balances and favorable liquidation dynamics supports the case for price appreciation, with $3.66 emerging as a key target if the token can overcome its current resistance level [1].

Source:

[1] https://coinmarketcap.com/community/articles/689f3fae27535303f8990d97/