XRP is experiencing increased demand as its exchange flow over the last day suggests that traders are more willing to buy or hold the asset rather than sell.
The positive move seen among investors has come despite the recent drop in the price of the asset, which halted the strong rally seen in the past few days.
XRP reserve falls to $2.75 billion
Despite XRP’s recent price weakness, data from crypto analytics platform Cryptoquant shows that the XRP reserve across all supported exchanges has shown a modest shortage and has fallen to $2.75 billion.
While the metric reached about $2.77 billion in the previous day, it has seen a mild decrease of about 2% over the period, suggesting a decrease in selling pressure.
It is important to note that sudden decreases in exchange reserves, especially for XRP, often suggest that holders are transferring XRP into private wallets. This is a key signal for increased buying activities, which could propel the price of XRP for higher surges.
While XRP has cooled from its recent rally and is now trading in the red, showing a decrease of 5.07% over the last 24 hours and trading at $1.35 as of press time, the decline in its reserve suggests that it might resume its rally soon.
XRP ETFs see first withdrawal in March
Although XRP has recently shown strong price moves, it has failed to sustain demands from investors as the XRP ETFs saw their first March outflow during the last trading session.
With a total of $6.15 million withdrawn from the XRP funds as of March 5, the XRP ETFs have broken their long streak of seven days consecutive inflows.
Dan Burgin
Vladislav Sopov
