Lower exchange balances and steady institutional inflows create conditions for a potential XRP price squeeze
XRP has pushed decisively above the $2.12 resistance level, marking a technically significant breakout after weeks of consolidation. The move occurred alongside above-average trading volume, suggesting genuine market participation rather than a short-lived spike. This price action is unfolding against a backdrop of tightening supply and sustained institutional demand.
One of the most notable structural drivers is the continued decline in XRP balances held on centralized exchanges, which are now sitting near multi-year lows. Historically, reduced exchange supply limits immediate sell pressure and can magnify price moves when demand increases. As fewer tokens remain readily available for trading, even moderate buying activity can have an outsized impact.
Institutional Flows Absorb Available Supply
Adding to the supply-demand imbalance, U.S.-listed spot XRP ETFs recorded $13.59 million in net inflows this week. These inflows have been consistent rather than speculative, helping absorb circulating supply during periods of sideways price action. Such steady accumulation often supports trend continuation if technical levels hold.
With price now established above a former resistance zone, $2.12 may act as near-term support. If exchange balances remain compressed and institutional inflows persist, XRP could remain positioned for further upside, provided broader market conditions stay supportive.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.