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XRP showed accumulation signals by recording a decrease in exchange holdings despite market volatility. Although the price trend has not escaped its bearish phase, an analysis suggests that demand from traders and institutional investors continues as the amount of XRP withdrawn from exchanges has increased.
U.Today reported on May 23 (local time), citing the latest data from CryptoQuant, that XRP exchange holdings decreased from 2,744,841,237 XRP to 2,709,389,071 XRP in just one day. The amount withdrawn from exchanges over one day exceeded 35 million XRP, and exchange holdings decreased by 1.29% during the same period.
A decrease in exchange holdings is generally interpreted as a signal of increased buying activity by traders. This is because if investors withdraw XRP from exchanges for storage, the amount immediately available for sale can decrease. This latest decrease occurred at a time when XRP was under price pressure amidst prolonged market volatility, drawing the attention of market participants.
XRP has been in a downtrend for over a week recently, testing the $1.31 level again amid continued price declines. At the time of reporting, XRP was trading at $1.33, having fallen 5.43% over the past 7 days. While the price alone might suggest increasing selling pressure, exchange activity indicators pointed in a different direction.
Market analysts interpreted the large-scale movement of XRP out of exchanges during a period of volatility as traders capitalizing on price weakness as an opportunity to buy at lower prices. The interpretation that this is a low-cost buying spree in preparation for a significant price breakthrough in the future was also raised.
Although XRP shows weakness on price charts, exchange holdings decreased by 1.29% in a single day, with over 35 million XRP withdrawn from exchanges. As price declines and a reduction in exchange holdings occur simultaneously, the XRP market continues to see a clash between selling pressure and demand for low-cost buying.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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