XRP withdrawals from exchanges have climbed to their highest since early 2021, marking a shift in trader behavior. The number of withdrawal transactions hit multi-year peaks while deposits dropped to the lowest levels seen in two years, suggesting holders are pulling XRP off exchanges and holding rather than selling.
This trend became especially clear in late July when spot ETF inflows for XRP neared $6 million, showing fresh investor interest despite the token dipping 2% over 24 hours and struggling to stay above the $1 mark. Bitcoin’s recent slide below $63,000 likely contributed to XRP’s short-term weakness, but onchain data paints a more nuanced picture.
Signs Point to a Consolidation Phase with Less use
According to crypto analyst Darkfrost, monthly XRP inflows to exchanges now average about 3.6 million tokens, the lowest ever recorded. Although this figure might seem significant, it reflects a clear exhaustion of sellers, which could pave the way for price stabilization. Meanwhile, the estimated use ratio a measure of open interest relative to exchange reserves has been falling since May. Exchange reserves hit their lowest point since February, indicating deleveraging and reduced systemic risk. This environment often precedes a consolidation period, where prices stabilize and volatility diminishes.
The reduced selling pressure combined with rising withdrawals signals that holders may be accumulating XRP, potentially building a base above $1. While it's uncertain if strong buying momentum will soon follow, these conditions could attract long-term investors looking for a buying opportunity in a steadier market.
This material is for informational purposes and does not constitute financial advice.
