XRP has remained in demand despite the mixed sentiments seen across the broad crypto market, all thanks to its recent price rally that caused the asset to break a major barrier.
Although momentum appears to be fading, data provided by crypto analytics platform CryptoQuant shows that the amount of XRP left on exchanges has continued to decline.
XRP reserve drops to 2.75 billion
XRP might be getting set for another price rally as recent onchain activity shows that selling pressure is fading and traders are increasingly showing conviction in the Ripple-associated cryptocurrency.
Shortly after the parabolic price surge seen on May 14, the price of XRP retreated to its weekly low around $1.39, halting expectations of a big bull run.
Despite the sharp price retreat, demand among retail and institutional investors remained intact, and they have continued to withdraw the asset from exchanges.
Following the persisting decline in the XRP exchange reserve, only about 2,754,700 XRP tokens are left on exchanges including Binance, Coinbase and others as of May 17.
XRP returns to green zone
After trading in the red territory over the last few days, it appears that the sustained demand is driving XRP's price back to the upside trajectory.
As of the time of writing, XRP is trading at $1.42, with a modest price surge of 0.97% over the last 24 hours. While its onchain activity shows that traders are buying and holding their assets for the longer term, market participants are hopeful of another price breakout soon.
The strong conviction in XRP's price potential is also evident in the growing institutional interest reflected in the performance of the XRP ETFs seen last week. Only the XRP ETFs concluded the last week on a positive note, showing notable net inflows, while both Bitcoin and Ethereum saw massive withdrawals.
Dan Burgin
