Large holders of XRP seem to be removing their holdings from exchanges, according to new data from crypto researchers, which points to a significant change in the market.
The number of active XRP addresses has also experienced an unusual surge, and the trend has raised concerns about a possible supply shock.
XRP Reserves Drop Amid Accumulation
Crypto influencer Steph claimed in a post that “weak hands” are selling XRP on exchanges while whales keep hoarding it. According to the accompanying chart, Binance’s XRP reserves have drastically decreased, indicating investors are moving their holdings into cold storage.
Such actions have historically indicated a tightening supply, which might raise prices if demand is sustained.
XRP Sees Exceptional Activity Growth
Supporting this story, crypto expert Ali Martinez provided data demonstrating a sharp 620% increase in active XRP addresses in a single week. The number of active addresses increased dramatically from 74,589 to 462,650, indicating more activity in the XRP ecosystem.
The expansion of the XRP Ledger, which has seen a 24% rise in the number of accounts since early 2024, is also consistent with this spike in activity. The XRP network now has around 6.2 million accounts, up from 5 million, and a significant increase in trustlines.
This rise emphasizes how the XRP Ledger is becoming increasingly popular as its ecosystem grows, strengthening the positive sentiment surrounding XRP.
Market Sentiment and Price Implications
XRP is currently trading at $2.45 with a 24-hour trading volume of $8.18 billion, reflecting a 5.16% increase in price. The combination of rising whale accumulation, declining exchange reserves, and a surge in active wallet activity is creating a bullish outlook for the asset’s near-term prospects.
If the trend of XRP leaving exchanges continues, a shortage of liquidity could potentially drive prices higher. Given that similar patterns have historically preceded significant price movements, traders are closely monitoring these on-chain signals.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
