XRP managed to stay above a critical support range that has been stabilizing its price through most of 2025.
Market participants are watching closely to see if holding this level, combined with falling exchange balances, could spark a broader recovery in 2026.
Exchange Holdings at Multi-Year Low
Data from Glassnode reveals that the amount of XRP stored on exchanges has fallen dramatically over the past two months.
From October 8 to this week, the total supply on exchanges declined from 3.76 billion tokens to roughly 1.6 billion.
These levels have not been observed since August 2018, highlighting a significant shift in holder behavior.
Traders often view reduced exchange balances as an indication that holders are moving assets into private storage or long-term holdings.
LeviRietveld, a trader and analyst, noted on X:
“$XRP supply tightens with about 1.5 Billion left on exchanges. Bullish, grab yours now!”
The drop coincided with unprecedented net outflows, as 1.4 billion XRP moved off exchanges on October 19 alone.
Institutional Accumulation and Reduced Selling Pressure
Large holders are typically behind such outflows, moving their tokens to cold storage or investment products.
This kind of activity lowers immediate selling pressure and can create conditions for price growth.
A trader known as Skipper observed:
“ETFs are draining $XRP from exchanges, tightening liquidity. XRP is now entering a more structural phase.”
He added that shrinking liquidity is changing how XRP’s price is determined, suggesting stronger potential for a recovery.
Strong Support Around $1.78
XRP’s price recently found support in the $1.60 to $1.84 range, a zone that has consistently held buyers throughout 2025.
According to Glassnode, $1.78 represents a particularly important level where over 1.8 billion tokens were previously acquired.
Should this zone hold, XRP could see renewed momentum and possibly a breakout on the weekly charts targeting higher levels around $3.79.
Analyst VipRoseTr stated:
“A breakout from the downtrend channel signals a possible bullish reversal.”
However, a failure to hold $1.78 could limit upside potential, leaving XRP range-bound until fresh bullish drivers emerge.
