- XRP exchange balances plunged by 430 million tokens in eight days, signaling a liquidity squeeze.
- Analyst Egrag Crypto notes the monthly RSI is mirroring the setup preceding the 2017 bull run.
- Price action has rebounded from $1.96, with analysts eyeing a breakout above $2.60.
XRP is flashing a major “supply shock” signal after on-chain data revealed that exchange balances have plummeted by nearly 430 million tokens in just eight days. This massive withdrawal of liquid supply coincides with a sharp price rebound from key support at $1.96.
Analyst XrpArthur highlighted this scarcity dynamic when he noted how shrinking supply often acts as a price catalyst, especially when demand remains stable or rises.
Related: XRP Price Prediction: XRP Attempts Reversal as Key Levels Tighten and Flows Stay Negative
The Supply Squeeze: 430 Million XRP Vanish
Data confirms this scarcity thesis. XRP’s exchange balance dropped from 2.63 billion tokens on November 16 to 2.20 billion by November 24. This trend reflects consistent, heavy outflows from trading platforms into private wallets.
With global crypto users now exceeding 700 million, this shrinking supply faces rising competitive demand. Analysts suggest this combination creates a powder keg for volatility. As liquidity tightens across major order books, even modest buying pressure can trigger outsized price moves.
RSI Signals a Late-Stage Bull Setup for XRP Price
Technical indicators support this bullish fundamental view. Analyst EGRAG CRYPTO examined the monthly RSI and noted that XRP’s indicator reached the 80 zone for only the second time in its history.
The first instance occurred in 2017 before the market turned lower. This year’s move produced another bearish cross, yet the indicator remains well above 50.
He stated that the market could stay in a late bull distribution phase until the RSI breaks below 50. He assigned a 60 percent probability to continued strength and a 40 percent chance of an early macro decline. Moreover, he stressed that the door for a final upward leg remains open.
XRP Price Strengthens After Channel Rebound
Ali Martinez observed a strong rebound from the channel floor near $1.96, showing firm demand at lower support. The price climbed above $2.14 and began moving toward the mid-channel area. He noted that $2.60 remains the next important level for momentum confirmation.
Failure to hold $2.10 could weaken the recovery, but current structure supports continued strength. XRP trades near $2.19 as of press time with a market cap of $132.1 billion.
Related: XRP Price Prediction: Downtrend Stays Dominant as $39M Outflows Hit
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