XRP News Today: XRP's Market Dynamics Change as ETFs and Investors Restrict Available Supply

XRP Market Outlook: Institutional Demand and On-Chain Trends Point to Breakout

XRP is experiencing notable changes in its market landscape, with increased interest from institutions and heightened on-chain activity hinting at a possible breakout.

Recent data from CryptoQuant reveals that XRP reserves on Binance have dropped to just 2.7 billion tokens, marking the lowest level seen in years. Since October 6, more than 300 million XRP have been withdrawn, a trend attributed to accumulation by long-term investors and exchange-traded funds (ETFs). Most of these tokens are being transferred to private wallets rather than being sold, indicating a shift toward holding rather than trading.

Market analysts, including Darkfrost, interpret this reduction in exchange liquidity as a positive signal, suggesting that tighter supply could drive up demand in the future.

Institutional Inflows and ETF Growth

The momentum from institutional investors is further supported by significant inflows into XRP-focused ETFs. Notably, funds such as Franklin Templeton's XRPZ and Canary Capital's products have seen consistent investments, with $73.9 million and $89.3 million added in separate weeks. Four more XRP ETFs are expected to launch soon, which could make XRP one of the most diversified assets in the ETF space, even outpacing Bitcoin in terms of ETF variety. These funds typically acquire XRP through over-the-counter transactions, which helps reduce immediate price swings while gradually tightening the available supply.

Technical Analysis and Price Action

Technical signals also point to strengthening momentum for XRP. After testing the $1.85 support level for the sixteenth time, XRP rebounded by 22%, a move that marks a historically significant reversal. Open interest has surpassed $4.11 billion, reflecting increased leveraged trading activity. Analysts are watching resistance levels at $2.28 and $2.36, with a potential breakout paving the way toward the $2.50 mark. Despite the optimism fueled by ETF inflows, XRP’s 50-day and 100-day exponential moving averages remain above the current price, indicating that bearish pressure still lingers.

Global Liquidity and Regional Trends

Shifts in global liquidity are further shaping XRP’s outlook. While Binance’s reserves continue to decline, South Korea’s Bithumb exchange is reporting an increase in XRP holdings, highlighting regional differences in accumulation. Meanwhile, Ripple’s RLUSD stablecoin is gaining momentum in Abu Dhabi, supporting the development of regulated payment systems and expanding XRP’s practical applications.

Future Prospects

If XRP can maintain a price above $2, the bullish scenario becomes more compelling. However, a drop below this threshold could trigger renewed selling pressure. With ETF investments accelerating and on-chain accumulation on the rise, XRP appears poised for a significant upward move. While some analysts see the $15 target as ambitious, the current market structure suggests that a strong rally could unfold as demand continues to build.