$336M XRP Pulled From Exchanges Amid Price Drop

Data from CryptoQuant reveals that approximately 149 million XRP tokens, valued at roughly $336 million, were removed from centralized exchanges within a 24-hour period. This represents one of the most significant single-day declines in XRP exchange reserves in recent months, indicating substantially fewer coins available for immediate trading on these platforms. Typically, such large-scale movements off exchanges signal a shift toward long-term holding strategies or preparation for offline custody, which would normally reduce selling pressure and potentially support price appreciation.

However, the market response defied conventional expectations. Despite the substantial outflow, XRP’s price declined sharply, falling below $2.30 and recording a 9% overnight drop. This contradictory movement suggests that while selling pressure may have diminished due to reduced exchange supply, there was insufficient buying demand to counteract the downward price momentum. The lack of correlation between supply reduction and price appreciation has raised questions among market participants about the underlying strength of XRP’s current market position.

The exchange reserve drop occurred shortly after a significant market milestone: the November 13 launch of the first US spot XRP ETF, known as XRPC. According to CryptoPotato reports, the new ETF recorded over $58 million in trading volume and attracted $245 million in inflows, with Robinhood confirming the listing and drawing substantial attention across the cryptocurrency space. Despite these seemingly positive developments, XRP’s price declined immediately following the ETF’s debut.

Analyst Crypto Patel characterized this pattern as typical ‘buy the rumor, sell the news’ behavior, noting that ‘markets move before headlines. Retail moves after.’ His analysis indicates that the market had largely priced in the ETF announcement ahead of the actual launch, leading to profit-taking once the event occurred. The price decline following what would normally be considered bullish news demonstrates how anticipated events can create temporary price distortions in cryptocurrency markets.

Binance data shows that large wallet transfers to exchanges have been declining since October, with only a brief spike on October 25 before returning to lower levels. The 30-day average also indicates fewer large-scale movements, potentially reducing selling pressure from major holders. During this same period, XRP’s price has retreated from above $2.60 to around $2.30, suggesting that while reduced whale activity may have prevented steeper declines, it hasn’t been sufficient to drive meaningful price recovery.

Technical analysis provides some cautiously optimistic signals for longer-term prospects. The Relative Strength Index (RSI) on the 3-day chart has broken out of a previous downward trajectory, with the current reading near 46 indicating mild upward momentum. Analyst Steph Is Crypto has identified similar historical patterns that preceded significant price gains. Meanwhile, Cryptollica’s analysis comparing XRP to its 2-year moving average bands places the token in a mid-range price zone, trading above the 2-year base level but well below upper bands, suggesting no immediate signs of extreme upward or downward movement.

The current market positioning leaves XRP in a neutral technical zone, with conflicting signals between substantial exchange outflows, post-ETF price declines, reduced whale activity, and mildly positive longer-term indicators. This creates an environment where traders await clearer directional signals before committing to significant positions in either direction.