Welcome to Extreme Investor Network, where we provide you with unique insights and analysis on the latest trends in the stock market, trading, and Wall Street. Today, we are taking a closer look at the XRP price movement and its correlation with exchange reserves.
In the aftermath of a significant crypto market crash on September 5th, exchange deposits for XRP saw a steady rise from 2.94 billion XRP to 3.12 billion XRP by October 1st. This increase in total deposits on exchange platforms amounted to 187 billion XRP, equivalent to around $100 million. Such persistent exchange inflows often indicate that traders are seeking short-term selling opportunities.
However, a notable shift occurred following Bitwise’s XRP ETF filing on October 2nd, leading to a movement of holdings into long-term cold storage. As of October 6th, exchange reserves for XRP dropped to 3.06 billion XRP. This shift resulted in investors transferring over 60 million XRP, valued at approximately $32 million, out of exchanges amidst a 6% rally in the last three days.
The recent trend of burning XRP coins to mint RLUSD has further decreased the short-term supply of XRP. This reduction in supply could potentially pave the way for an accelerated breakout in the coming days.
Looking ahead, bulls in the market are anticipating a breakout towards $0.55 for XRP in the week ahead. The impact of the RLUSD launch and Bitwise ETF filing has helped XRP price outperform Bitcoin over the weekend. With a $32 million decline in market supply and $43 million inflows from RLUSD mints, XRP appears poised for another upward movement.
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