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Despite the ongoing correction in the price of $XRP, its exchange reserve has shown a notable decline in the past day, raising optimism among holders.
According to data provided by the on-chain analytics platform, the $XRP reserve across all supported exchanges has shown a modest shortage of about 2% over the last 24 hours.
$336 million in $XRP bought in one day
Notably, a chart published by the data source shows that the $XRP reserve across all exchanges has reduced by 149,158,000 $XRP, worth about $336.4 million in just 24 hours.
As such, the total $XRP sitting in all supported exchanges is worth about $6.82 billion as of November 11.
While sudden decreases in exchange reserves, especially for $XRP, often suggest that holders are transferring $XRP into private wallets, it is a key signal for increased buying activities, which could propel the price for higher surges.
Furthermore, the metric often stands as a strong indication of long-term confidence and reduced selling pressure. Hence, it appears that the ongoing decline in the price of $XRP is not attributable to market sell-offs; rather, the asset might only be responding to the broader crypto market trajectory.
$XRP bulls anticipate first $XRP ETF launch on Thursday
Although the broad crypto market is currently witnessing severe price corrections, with prices of leading cryptocurrencies recording significant daily declines, the surge in the $XRP reserve comes as a surprise.
While the metric contradicts $XRP’s current price trajectory, it appears that whales have scooped off the tokens at discounted prices, buying $XRP’s dip in preparation for a major price move ahead.
Furthermore, the resilience portrayed by $XRP holders amid the heightening market volatility appears to have been ignited by the growing anticipation surrounding the first-ever spot $XRP ETF, expected to launch tomorrow, November 13.
Following the launch of this product, $XRP is about to offer institutional-grade access, which has made it more appealing to both retail and institutional investors. As such, speculation suggests that $XRP whales are quietly accumulating the token while betting on a supply squeeze once the CanaryFund spot $XRP ETF trading goes live.