XRP is showing a shifting market structure as exchange reserves decline and trading activity moves away from centralized platforms. CryptoQuant data highlights a steady reduction in XRP held on exchanges, while inflow and outflow trends show changing supply conditions.
Meanwhile, analyst CW highlighted rising activity around XRP short positions, noting that short whales attempted to pressure the market while buying interest absorbed the selling activity.
XRP continues to show reduced supply on exchanges, with CryptoQuant ledger data highlighting a steady decline in the amount of XRP available for trading. Exchange reserves have dropped below recent levels, coinciding with the price remaining around $1.10.
Source:
Even so, inflows occur sporadically, often followed by immediate outflows. The exchange outflow chart confirms coins are moving off platforms, yet some selling persists during high-volume intervals. The net effect points to a gradual reduction in circulating supply, which historically supports price stability at key levels.
This trend has been particularly noticeable over the last several weeks, as the overall exchange balance continues to trend downward despite intermittent spikes in inflows.
Analyst CW notes that short whales have attempted counterattacks, but buying interest has been sufficient to prevent strong downward movements. The short positioning chart shows accumulation of bearish bets, yet the market absorbs these without dramatic price drops.
This dynamic has created a consolidation zone near $1.10, where the interplay between long and short positions is tightly balanced. Notably, large short positions have not led to significant losses, suggesting the market is actively managing downward pressure.
Even so, whale activity remains a key factor, as temporary spikes in selling can still impact price during volatile periods.
Related: Q3 XRP Outlook: Weekly Patterns Suggest Next Move Could Be Bullish
TradingView charts highlight a recovery from oversold RSI conditions, though the indicator remains near neutral territory. MACD lines have begun tentative bullish crossovers, suggesting buyers are gradually gaining influence.
Momentum is fragile, and analysts note that a sustained move above $1.15–$1.17 would be required to shift technical conditions more strongly toward bullish. Meanwhile, price continues consolidating near $1.10, navigating a narrow range influenced by both supply reductions on exchanges and active short positions.
