XRP investors have remained resilient on the fourth-largest cryptocurrency by market capitalization as activity across top crypto exchanges, especially Binance, signals sustained demand.
Notably, XRP exchange flow over the last day suggests that traders on Binance are more willing to buy or hodl XRP rather than sell off their holdings.
According to data from crypto analytics platform CryptoQuant, the XRP reserve on the world’s largest cryptocurrency exchange, Binance, has shown a modest shortage over the last 24 hours, dropping to $2.79 billion as of Sunday, March 22.
Typically, the decline in the XRP reserve indicates that holders are transferring XRP into private wallets, usually to hold. This is a key signal for increased buying activity, which could propel the price of XRP for higher surges.
XRP institutional demand cools
While the decline in the XRP reserve signals sustained demand from investors, it appears that the demand has been largely driven by retailers as recent performance from XRP ETFs suggests that institutional investors are taking caution.
For the first time since it launched late last year, the XRP ETF market has recently recorded the longest outflow streak, seeing about a week of steady withdrawals.
While XRP ETFs have failed to regain momentum, recording little to no fresh capital intake in recent days, it is safe to say that institutional investors have barely contributed to the growing demand for the leading cryptocurrency.
XRP dips 3.11%
Despite the bullish XRP exchange flow, its price has remained in the red, suggesting a decline in broader market sentiment.
Following the weak price move, XRP has fallen by 3.12% over the last 24 hours, trading at $1.39 as of the time of writing.
With XRP trading on the downside, it appears that the sustained demand seen in its exchange flow has failed to drive a substantial increase for XRP’s price.
Dan Burgin
Vladislav Sopov
