[Analysis] "XRP exchange supply ratio declines…a re-accumulation signal"

XRP’s exchange supply ratio has recently been on a downtrend, suggesting some investors have begun re-accumulating XRP.

CryptoQuant contributor Darkfost said via CryptoQuant on the 19th (local time) that “over the past 10 days, Binance’s XRP ‘Supply Ratio’ fell from 0.027 to 0.025,” adding that “about 200 million XRP left Binance over the period.” The supply ratio is an indicator showing the share of an asset’s total circulating supply held by exchanges. Darkfost said, “A decline in assets held on exchanges means investors are moving their holdings to self-custody solutions such as personal wallets,” and added that it “can be interpreted as a signal reflecting an accumulation trend and willingness to hold for the long term.”

Darkfost noted, “Of course, some of the movements could be due to internal reallocations within the exchange.” He added, however, “Major exchanges such as Binance regularly disclose custody addresses,” and said, “This makes it possible to distinguish user-driven net outflows from internal operational adjustments with relatively high accuracy.”

Darkfost’s assessment is that investors viewed XRP’s current price range as a buying opportunity. He said, “XRP has undergone a correction of about 40% since the start of the year,” and analyzed that this “could be a factor that increases interest among investors seeking a mid- to long-term strategy.” He continued, “In conclusion, it appears some investors, with long-term holding in mind, are positioning by withdrawing XRP from exchanges and storing it in personal wallets.”

Meanwhile, XRP was trading at $1.42 on CoinMarketCap as of 6:46 p.m. that day, down about 4.46% from the previous day. Compared with a week earlier, it is up 2.41%.