XRP is seeing increased demand amid the broad crypto market resurgence, causing it to achieve one of the largest outflows seen so far this year.
Onchain analytics platform Santiment has recently provided data revealing that a massive increase in XRP outflows is signaling increased buying activity among traders.
XRP sees 6th largest outflow of the year
The data reveals that a total of about 34.9 million XRP flowed out of exchanges within the last day amid the growing demand for XRP.
The massive single-day outflow has caught the attention of market watchers as it marks the sixth-largest daily outflow so far this year.
The massive outflow seen on the XRP ledger signals tightening supply for XRP, as recently signaled by Evernorth following its report of about 7 billion XRP outflows seen in February.
This consistent increase in the XRP outflow across all exchanges suggests that demand is beginning to outweigh supply and XRP may be faced with a supply crunch soon.
XRP price breakout incoming?
Further data provided by the source revealed that similar increases in exchange outflows have preceded periods of bullish price moves and major recovery for XRP.
As such, the record outflow seen recently has stirred hopes among investors that XRP might be preparing for a major price move ahead.
Moreover, the growing number of XRP tokens being scooped out of exchanges is a strong indicator of growing confidence among investors and easing selling pressure.
If momentum persists, XRP is expected to finally break the long streak of monthly losses that began in October 2024.
Dan Burgin
U.Today Editorial Team
