The recent market activity surrounding XRP has caught the attention of cryptocurrency analyst Xaif Crypto, who, in a post, highlighted a decisive upward movement in the short-term charts.
The presented technical structure shows XRP trading near the level of $1.95 after surpassing the recent intraday resistance, with the price action maintaining close to the session's high. The movement occurred alongside an increase in volume, reinforcing the view that buyers are actively sustaining the trend, rather than relying on low liquidity.
The chart shared by the analyst reflects a clear bullish setup across multiple exponential moving averages. Short-term averages have surpassed long-term averages, while the price remains comfortably above all major indicators.
This alignment typically reflects a strengthening of momentum and increasing confidence among market participants. The sequence of higher lows and highs further reinforces the assessment that XRP is currently in a continuation phase, rather than a short-lived reactive recovery.
Momentum increases as volume confirms the movement.
Volume dynamics play a central role in the analyst's assessment. Trading activity notably increased during the upward push, suggesting that the movement was sustained by participation rather than speculative spikes.
This is important because sustained trends generally require consistent inflows to remain intact. The combination of increasing volume and firm price structure reinforces the interpretation that XRP is entering a more constructive market phase.
At the time of observation, XRP briefly tested levels just below $2 before consolidating, indicating that the market is actively assessing this price zone. Maintaining above previous resistance levels turns these zones into potential support, which can be significant if momentum persists.
The reduction in exchange supply adds structural context.
In response to the chart, an Exchange user pointed to the historically low level of XRP held on exchanges, describing it as the lowest seen in eight years. This observation aligns with the broader trends in on-chain data reported in recent months.
Independent data cited in the Times Tabloid report, based on analysis from Cointelegraph, shows that XRP balances on centralized exchanges have drastically fallen to approximately 1.6 billion tokens. In October, for example, balances on exchanges were approximately 3.76 billion, highlighting the scale and speed of this decline.
This reduction reflects a continuous movement of XRP withdrawals from trading platforms, limiting the amount readily available for immediate sale. While a lower supply on exchanges does not guarantee price appreciation, it alters how the market responds to demand. With fewer tokens accessible, buying pressure can have a more pronounced impact when it arises.
ETFs and their implications on market structure
The supply dynamics are further influenced by the launch of multiple XRP ETFs (exchange-traded funds). These products require direct backing in XRP, meaning that inflows translate into the removal of tokens from active circulation. Unlike short-term trading demand, ETF-related accumulation exerts constant and non-speculative pressure on supply.
When the decrease in balances on exchanges combines with consistent institutional absorption, the overall market structure becomes more restrictive. This scenario provides important context for the technical strength highlighted by Xaif Crypto. Together, the chart structure and on-chain trends suggest that XRP's current movement is not occurring in isolation, but rather within a broader change in availability and demand dynamics.
🚀 FOLLOW for early alerts 🙌🏽🚀💰💰💰
Remember folks, that nothing said here represents a recommendation to buy, sell, or hold assets.
Thank you all!