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$XRP has continued to flash bearish signals as nearly all of its key metrics are moving in response to the broad pullback seen across the crypto market.
While momentum has continued to fade, $XRP traders are beginning to be cautious as data from on-chain analytics platform CryptoQuant shows that the $XRP exchange reserve has increased to 2,715,500,000 $XRP.
$XRP demand on pause
While the exchange reserve of $XRP represents the total number of the tokens combined held by all supported exchanges, including Binance, Coinbase and others, it serves as a crucial metric to weigh investor sentiment and the overall behavior of traders.
Usually, when this metric declines, it means that more tokens are being moved out of the exchanges to private wallets for buying purposes amid rising demand among retail and institutional investors.
On the other hand, when this metric increases, as seen over the last day, it suggests that demand has been halted and traders are selling off their holdings rather than hold them, especially in periods of consolidation or broad crypto market downturn.
While the crypto market has remained on a downside trajectory for multiple days with leading crypto assets like Bitcoin, $XRP and others, retesting their multimonth lows, it is not a surprise that the asset’s exchange reserve has continued to rise.
$XRP retests $1.50
With the surge in $XRP’s exchange reserve coinciding with a long-persisting price drawdown, it appears that the ongoing correction in the price of $XRP might be far from ending.
As the asset has continued to fail on every attempt to recover, it has now retested $1.50, a level not seen since November 2024.
While the heavy price correction appears to be slightly cooling down, $XRP has only dipped by 2.68% over the last day, unlike the heavy declines of over 5% seen in previous days.