XRP (XRP) remained above a key demand zone that has supported its price throughout 2025. Will maintaining this level and a declining balance on exchanges trigger the start of a sustained recovery in 2026?
Key takeaways:
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XRP supply on exchanges has fallen to an 8-year low, indicating a reduction in selling pressure.
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XRP price bulls are looking to establish strong support at $1.78 for the next bullish leg.
XRP supply on exchanges falls to seven-year lows
As Cointelegraph reported, there has been a sharp decline in the supply of XRP on exchanges over the past 60 days, according to data from Glassnode.
Related: XRP Price Below $2: Negative Sentiment Indicates ‘Strong Bounce’ Ahead
The XRP balance on exchanges fell by 2.16 billion tokens to 1.6 billion on Tuesday, from 3.76 billion on October 8, levels last seen in August 2018.
A dwindling balance on exchanges suggests a lack of selling intention on the part of holders, reinforcing XRP’s bullish potential.
“$XRP supply shrinks with around 1.5 billion remaining on exchanges,” trader and analyst LeviRietveld said in a Monday post on X, adding:
“Bull, take yours now!”
The sharp drop coincided precisely with record currency outflows, as the net position change of XRP between exchanges fell by 1.4 billion XRP on October 19, marking the largest peak in history.
These outflows typically indicate strong accumulation by large holders, who move the tokens into cold storage or investment products, thus reducing immediate selling pressure.
“ETFs are draining $XRP from exchanges, reducing liquidity,” pseudonymous trader Skipper said in a Tuesday analysis on X, adding that the altcoin could solidify its position as an institutional-grade asset in 2026.
The merchant added:
“As liquidity dwindles, XRP price discovery is fundamentally changing.
XRP has strong support above $1.78
XRP’s recent decline was halted by buyer congestion from a key demand zone between $1.60 and $1.84, which has supported the price throughout 2025.
Holding above this support level has previously been preceded by significant recoveries in XRP price, as shown in the chart below.
Glassnode’s UTXO Realized Price Distribution (URPD), which shows the prices at which the current supply was created, indicates that $1.78 is the most significant support for XRP, where investors acquired 1.87 billion tokens.
There is no significant support below this level, and losing it reduces any hope of XRP price recovery in 2026.
On the other hand, a rebound from this area could confirm a breakout of the triple bottom in the weekly period with a target of $3.79, according to analysts VipRoseTr.
“A breakout of the downtrend channel indicates a possible bullish reversal.”
As Cointelegraph reported, XRP price could remain range-bound until 2026, and analysts say a stronger uptrend will likely depend on new bullish catalysts emerging later in the cycle.
This article does not contain investment advice or recommendations. Every investment and trading move involves risks, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness or reliability of the information contained in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
This article does not contain investment advice or recommendations. Every investment and trading move involves risks, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness or reliability of the information contained in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
