XRP holders are moving their coins out of centralized exchanges at a steady pace, pushing deposits to monthly lows while withdrawals remain high. This shift hints at growing confidence among investors, especially whales, who are increasingly choosing to hold rather than sell their tokens.
Over the past two months, Binance saw its XRP inflows fall to the lowest point in 60 days. Exits surged with 361,000 transactions, and last month deposits dipped to just 328,300 transactions, showing a clear weekly decline. This trend restricts the amount of XRP available for immediate sale on exchanges, often leading to price gains as supply tightens. Other exchanges also report higher withdrawal rates compared to deposits, driven by significant traders moving funds to safer custody.
Such behavior typically points to long-term accumulation instead of quick profit-taking. The combination of fewer XRP deposits and increased withdrawals suggests that selling pressure on exchanges is diminishing. If this pattern continues, the spot market supply on platforms like Binance could keep shrinking.
Whales resumed buying after sensing a market bottom, coinciding with XRP’s 11% jump over six days and Ethereum's breakthrough above $1,900. Analysts link this rally to optimistic sentiment surrounding altcoins like XRP and SOL, along with a mid-cycle rotation of capital into these assets. However, this is not a shift away from Bitcoin, which continues to attract inflows from gold and AI stocks.
Research from CryptoQuant highlights the growing dominance of institutional holders driving XRP’s upward momentum. These investors aim to offset their January losses while minimizing risk exposure. Despite a 65% drop over the last year, XRP remains a favorite for large moves, as seen when it briefly ranked third by market cap. Currently, it holds sixth place with a market capitalization of about $68.9 billion, supported by strong weekly gains fueled by big institutional purchases.
