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

XRP (XRP) exchange-held balances have fallen to their lowest level in the past 8 years, raising the possibility of a medium-to-long-term rise due to supply reduction.

On the 30th (local time), cryptoasset (cryptocurrency) specialist media Cointelegraph reported that, according to aggregation by on-chain analytics firm Glassnode, 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 that holders' selling pressure is weakening and long-term holding tendencies are strengthening. Generally, when the amount on exchanges decreases, available circulating supply falls, which can increase price volatility.

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

The outlet said that expectations related to a spot XRP exchange-traded fund (ETF), combined with a trend of shrinking liquidity, mean that a structural uptrend next year cannot be ruled out.