XRP (XRP) held above a key demand zone that has provided support for its price throughout 2025. Will holding this level and a reducing balance on exchanges trigger the start of a sustained recovery in 2026?
Key takeaways:
XRP supply on exchanges has dropped to an 8-year low, signalling reduced selling pressure.
XRP price bulls look to establish strong support at $1.78 for the next leg up.
XRP supply on exchanges fall to seven-year lows
As Cointelegraph reported, there has been a sharp decrease in the XRP supply on exchanges over the last 60 days, according to data from Glassnode.
Related: XRP price below $2: Negative sentiment signals ‘strong rebound’ ahead
The XRP balance on exchanges dropped by 2.16 billion tokens to 1.6 billion on Tuesday, from 3.76 billion on Oct. 8, levels last seen in August 2018.
A reducing balance on exchanges suggests a lack of intention to sell by holders, reinforcing the upside potential for XRP.
“$XRP supply tightens with about 1.5 Billion left on exchanges,” said trader and analyst LeviRietveld in a Monday post on X, adding:
“Bullish, grab yours now!”
The sharp decline coincided precisely with record exchange outflows, as the XRP net position change among exchanges fell by 1.4 billion XRP on Oct. 19, marking the largest spike in history.
Such outflows typically indicate strong accumulation by large holders, who move tokens to cold storage or into investment products, thereby reducing immediate sell-side pressure.
“ETFs are draining $XRP from exchanges, tightening liquidity,” said pseudonymous trader Skipper in a Tuesday analysis on X, adding that the altcoin could cement its position as an institutional-grade asset in 2026.
The trader added:
“As liquidity tightens, XRP’s price discovery is fundamentally shifting. XRP is now entering a more structural phase.”
XRP sits on strong support above $1.78
XRP’s recent drawdown was stopped 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 dims any hopes of an XRP price recovery in 2026.
On the other hand, a rebound from this zone could confirm a triple-bottom breakout in the weekly timeframe targeting $3.79, according to analysts VipRoseTr.
“A breakout from the downtrend channel signals a possible bullish reversal.”
As Cointelegraph reported, XRP’s price could remain range-bound into 2026, with analysts saying a stronger uptrend will likely depend on fresh bullish catalysts emerging later in the cycle.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, 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 any information 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 risk, 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 any information 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.
