XRP Supply Tightens, but Price Remains Stalled
XRP is seeing record outflows from exchanges, reducing available supply, yet the token is stuck near $1.34. The mismatch between tightening liquidity and muted price action points to accumulation without clear upward momentum.
Market Highlights
- XRP traded up to $1.34, with volume 29% above the weekly average.
- February outflows totaled 7.03 billion XRP, compressing circulating supply.
- Binance scarcity indicator climbed to 0.59, the highest reading since 2024.
Price Action
- XRP has held a tight $1.33–$1.34 range, repeatedly testing resistance.
- Buyers defended dips near $1.31, creating higher lows, though breakout attempts stalled.
- Late-session buying was steady but lacked decisive follow-through.
Technical Insight
- Supply is tightening, but price expansion remains limited, suggesting sellers remain active overhead.
- Elevated volume without upward movement indicates positioning rather than conviction.
- Such compression often resolves with a sharp directional move.
Key Levels
- Immediate resistance: $1.34–$1.35; a break could open the path to $1.42.
- Support: $1.31–$1.32, crucial for maintaining market structure.
- Continued stalling despite supply reduction may signal persistent selling pressure.
