XRP has continued to flash bearish signals across its network and price performance. However, its exchange activity appears promising as it suggests that the asset is still in demand.
Latest data from crypto analytics platform CryptoQuant shows that the XRP exchange reserve has continued to decline, signaling increased buying activity.
XRP retains demand despite price slump
According to data provided by the source, the XRP exchange reserve has dropped from 2,744,841,237 XRP to 2,709,389,071 XRP in just one day.
While this suggests that a total of over 35 million XRP were scooped from exchanges within 24 hours, it marks a decrease of 1.29% in the XRP exchange reserve over the period.
It is important to note that decreases in exchange reserves are typically interpreted as a sign of increased buying activities among traders, suggesting that the demand for the asset has increased.
However, the notable drop in the XRP exchange reserve has arrived at a time when XRP has been suppressed under prolonged market volatility. As such, the positive exchange metric has sparked curiosity among market participants.
XRP traders buy the dip
While XRP is being heavily moved off exchanges during a period of volatility, market analysts believe that traders are utilizing the price weakness as an opportunity to buy the asset for cheaper prices while preparing for a major price breakout ahead.
Following the sustained market pressure, the price of XRP has remained in the red for more than a week and it has recently retested the $1.31 level as its price continues to plunge lower.
While XRP is currently trading at $1.33 as of the time of writing, the asset has fallen by 5.43% over the last week, a move that could have signaled increased selling pressure, but its exchange activity says otherwise.
Dan Burgin
