XRP Price Weakens Near $2.30 as $336M Leaves Exchanges, Traders Step Back

XRP price has dropped back to the $2.30 level after a failed breakout. Analysts indicate that the overall market response has failed to surpass the upper limit of the current range on several occasions.

XRP has been unable to surpass one of the major resistance areas, ranging from $2.60 to $2.70, since the beginning of October. The price tested this area on October 7, October 13, and November 4, but it has been closing lower every time.

Such recurrent rejections have kept the XRP price within a narrowing band characterized by decreasing highs and a consolidation zone of approximately $2.20 to $ 2.31.

Wednesday’s candle was rejected precisely at the mid-range line near $2.34. The level provided short-term support between October 28 and November 2 before flipping into resistance.

However, some progressions defined the price behavior of XRP during the second half of the year. The late July rally, which pushed the XRP price from $1.00 toward $3.00, established the upper portion of the current structure.

Following the peak at the end of July, XRP entered a prolonged cooling phase that lasted through August and September. This time gave rise to a series of low highs. This implies that the positive trend that emerged in the summer had disappeared.

The long-term chart also shows historical support around $1.58. Although the ongoing price movement is still too high to reach the target level, the support remains applicable as the next significant demand zone within the larger formation.

Exchange Reserves Record Sharp Short-Term Decline

Although price finished the day on a lower note, on-chain supply statistics reflected a sharp change. CryptoQuant data indicates that over 149 million XRP coins, valued at approximately $336 million, have been withdrawn from centralized exchanges within a 24-hour period.

The reserve chart indicates that XRP held by exchanges surpassed the $10 billion mark in January 2025. Since February, the chart shows a gradual decline, with intermittent inflow spikes, followed by additional outflows.

Reserves fell to the range of $7 billion towards the end of July and stabilized. November fall is among the strongest daily falls.

The price line, however, does not indicate instantaneous movement after the recent outflow. The XRP price movement was still around the same level of $2.30. This means that the supply shift did not translate into an abrupt market impact during the daily session.

As the supply on the exchange continues to decrease, the price remains confined within its multi-week consolidation range.

XRP Seeing Massive Stacking

Examining other factors affecting XRP, recent news indicates that institutional buying activity has increased in recent days.

Canary Capital affirmed that its customers had been buying XRP for approximately $ 245 million. This brought in a significant accumulation element to the daily information stream.

The accumulation number, however, is not directly shown on the reserve chart. Despite this, it remains consistent with the general trend of the transfer of tokens out of exchange balances and into deep storage.

This institutional flow provides significant value to the measures of supply. Although traders decrease their short-term exposure and the exchange reserves decrease, larger investors appear to continue repositioning their holdings.

The dwindling reserves and massive accumulation could be what is adding to the current supply landscape.