115 Million XRP Withdrawn From Spot Exchanges, Is Demand Rising?

According to CoinGlass data, $XRP recorded $115.02 million in spot outflows in the last 24 hours, which represents $XRP withdrawn from exchanges in the said timeframe. This exceeded spot inflows, which came in at $99.41 million, resulting in a negative net spot flow of -280.65%.

The $XRP outflow suggests that investors are removing their coins from exchanges, which suggests accumulation and long-term holding rather than short-term selling, and may be a positive indicator of demand.

This is accompanied by a rise in open interest, an indicator of open positions, which is up 3.96% in the last 24 hours to $2.96 billion, according to CoinGlass data.

The timing of the withdrawals is notable as it coincides with a surge in $XRP ETF inflows. According to Sosovalue data, $XRP saw positive daily net inflow of $6.04 million on May 8.

Increased outflows can sometimes indicate quiet accumulation by whales or institutions who might be positioning ahead of potential catalysts and hence remain significant. However, outflows can also be due to internal wallet reshuffling, custodial changes, or OTC transactions that might not necessarily reflect direct buying pressure, which adds a bit of caution to the bullish narrative.

$XRP eyes imminent volatility

At the time of writing, $XRP was up 2.22% in the last 24 hours to $1.41 as the broader crypto market returned to trade in green.

$XRP remains in a range; however, volatility is tightening and liquidity is thinning, setting up the potential for a sharper breakout.

Analysts point to bull flag and falling wedge patterns, accompanied by $XRP ETF inflows and weaker Binance order books, to imply increased volatility might be imminent.

The resistance range between $1.43 to $1.51 is being watched by traders, as well as the support near the daily MA 50 at $1.38. A move past the $1.51 level might pave the way for a rise towards $1.60 and even $1.73.

Next week might bring about volatility to the crypto market as reports indicate that the Senate Banking Committee has signaled a markup for Thursday, May 14 to advance major crypto market structure legislation.