XRP Edges Higher over Tight Crypto Exchange Supply
Ripple (XRPUSD) price swung higher by 1.07% to $1.87 over 24 hours, outperforming the broader crypto market’s daily gain of +0.54%, trading data obtained across exchanges showed.
XRP price movement reflects mixed sentiment and supply tightening that lifted its market value to $112.55 billion following a 4.24% increase in trading volume to $1.07 billion.
This comes after testing key support levels and amid mixed technical signals.
Trading data signalled that investors actively defended $1.86 Fibonacci support on Sunday amidst supply tightening, a zone defended since pre-holiday trading session.
Trading data suggests institutional buyers could be accumulating at this technical level, reflecting XRP trading at an oversold level, having lost 15% year to date, according to data from crypto exchange.
XRP exchange supply tightened because spot XRP ETFs absorbed large amounts of XRP while bigger holders moved coins into self-custody, reducing tradable inventory on exchanges
Spot XRP ETFs saw $756 million in cumulative inflows on Sunday, while futures open interest hit 2025 lows of $450 million on Binance, trailing its $1.1 billion peak.
This confirmed that institutions are accumulating via regulated ETFs while leveraged traders exit – reducing sell pressure. ETF holdings now equal 12.8% of XRP circulating supply, creating structural demand
The tightening in XRP exchange supply is mainly driven by sustained spot ETF inflows and coins moving off exchanges into custody, which together reduce tradable inventory. Spot XRP ETFs have taken in roughly $1.14 billion since launch, shrinking liquid supply on exchanges
New spot XRP ETFs – Canary, 21Shares, Grayscale, Bitwise, Franklin Templeton- collectively logged over $1.14 billion net inflows, with estimates that about 750 million XRP have been absorbed since launch, directly reducing liquid exchange supply
Total ETF net assets were cited around $1.24 billion late December, a scale meaningful enough to tighten tradable supply. As ETFs keep absorbing XRP and hold it rather than trading it, less inventory sits on exchanges. Even moderate buy pressure can move price when liquid supply is thin.
On-chain exchange reserves declined, with Binance balances dropping to around 2.66 billion XRP, the lowest since July 2024. This pattern typically reflects coins leaving exchanges for long-term custody and reduces immediate sell-side liquidity
Multiple reports place total XRP remaining on exchanges is about 1.5 billion XRP, reflecting a sharp contraction from earlier levels and setting the stage for higher price sensitivity if demand persists.
