XRP exchange holdings at lowest in 8 years…Expectations of a rise next year amid supply reduction

JH Kim

Summary

Reported that XRP's exchange holdings have fallen to their lowest level in 8 years.
Stated that reduced supply on exchanges and strengthened long-term holding are expected to increase price volatility.
Reported that expectations for an XRP spot ETF combined with reduced liquidity could raise the possibility of a structural rise next year.

XRP's exchange-held supply has fallen to its lowest level in eight years, raising the possibility of a medium- to long-term price increase due to supply reduction.

On the 30th (local time), according to crypto-focused media Cointelegraph, on-chain analytics firm Glassnode's tally showed that XRP balances on exchanges plunged from about 3.76 billion on October 8 to about 1.6 billion as of the end of December. This is the lowest level since 2018.

The outlet explained that the decline in exchange holdings suggests holders' selling pressure is weakening and long-term holding tendencies are strengthening. Generally, when exchange-held supply decreases, the available circulating supply is reduced and price volatility can widen.

The market cites around $1.78 as a key support level for XRP. This zone is a price level where buying previously entered, and it could act as a defensive line in the event of further declines.

The outlet said that expectations for an XRP spot ETF, combined with the flow of reduced liquidity, mean a structural upward phase next year cannot be ruled out.