XRP Exchange Balances Plummet to 7-Year Lows While Price Stabilizes at $1.87
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
- Exchange Balance Drop: XRP's exchange balances have plummeted to approximately 1.6 billion, the lowest in nearly seven years, down from 3.76 billion in October, indicating a significant outflow of XRP from exchanges, which may suggest holders are opting for long-term storage.
- Limited Price Movement: Despite the sharp decline in exchange balances, XRP's price remains stable between $1.85 and $1.87, indicating a sluggish market response to potential price breakout, which may lead to a lack of upward momentum in the short term.
- Increased Liquidity Risk: The reduction in exchange inventory could lead to decreased market liquidity, resulting in heightened price volatility; while lower supply may support prices to some extent, it also raises the risk of sudden price drops if sellers emerge.
- Market Behavior Analysis: The current supply-demand dynamics suggest that although the tradable XRP on exchanges is decreasing, demand is not growing in tandem, leading to stagnant prices and reflecting market uncertainty regarding future trends.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
