XRP Supply Shrinks, but Price Struggles to Break Out
XRP is experiencing record outflows from exchanges, reducing available supply, yet the price remains pinned near $1.34. This divergence between tightening supply and muted price action leaves the market setup unresolved, suggesting accumulation without clear upward momentum.
Market Highlights
- XRP edged up to $1.34, with volume 29% above the weekly average.
- February saw 7.03 billion XRP leave exchanges, signaling significant supply compression.
- Binance scarcity indicator climbed to 0.59, its highest since 2024.
Price Action
- The token traded in a tight $1.33–$1.34 range, repeatedly testing resistance.
- Buyers defended dips near $1.31, forming higher lows, but early breakout attempts failed.
- Late-session buying was steady, but momentum remains muted.
Technical Outlook
- Supply is tightening, but price expansion is limited, indicating sellers remain active.
- Elevated volume without upward movement points to positioning rather than strong conviction.
- Compression like this often precedes a sharper directional move.
Key Levels to Watch
- Immediate resistance: $1.34–$1.35, breaking which could open a path to $1.42.
- Support: $1.31–$1.32, critical for maintaining structure.
- Continued stalling despite shrinking supply may signal persistent overhead selling.
