XRP Supply Dwindles While ETFs Go On A Buying | Crypto News
XRP is slowly getting into one of the most important structural phases in its historical past. Price motion has been largely bearish and sentiment across the broader crypto market has been cautious, but on-chain data tells a very different story.
Data from Glassnode reveals XRP balances on centralized exchanges falling to around 1.5 billion XRP, their lowest in over a 12 months. This pattern is unfolding alongside accumulation from newly launched XRP ETFs, creating situations that might change the altcoin’s price dynamics heading into 2026.
XRP Exchange Balances Fall To Multi-Year Lows
Data from Glassnode’s XRP steadiness on exchanges metric factors to a clear and persistent downtrend in balances held on crypto exchanges throughout 2025. Earlier in the 12 months, about 4 billion XRP sat on centralized platforms.
Since then, balances have steadily declined, with a significantly sharp drop seen in the fourth quarter of the 12 months. As it stands, exchange-held XRP has compressed toward the 1.5 billion mark, one of the bottom ranges recorded in latest years.
This decline has occurred despite the current downtrend in XRP’s price motion, which means that some holders are more and more opting to transfer tokens into longer-term custody, even as some others are promoting off their holdings. This pattern is important for bullish momentum, as falling exchange balances cut back near-term promote strain and make cryptocurrencies more delicate to incoming demand.
At the middle of this provide contraction are US-based Spot XRP ETFs, which have risen as a highly effective new source of demand. Market estimates point out that about 750 million XRP have been absorbed by the six Spot ETF merchandise since the first one launched in November.
As ETFs continue pulling XRP off exchanges, the pool of liquid provide obtainable to the spot market retains shrinking. This dynamic doesn’t drive an instant price response, but it modifications the steadiness between provide and demand, and we might start to see the results on the crypto in 2026.
Weekly Chart Points To Exhaustion As XRP Sits On Support
While on-chain data highlights tightening provide, technical situations are starting to mirror a related theme. Crypto analyst Steph Is Crypto lately identified that XRP is now sitting on an important horizontal assist zone on the weekly timeframe.
The chart reveals XRP’s price motion is now compressing into the $1.90 to $2.00 vary after an prolonged decline from mid-2025 highs close to $3.50, putting XRP back at a degree that beforehand acted as a launch level earlier in the cycle.
Furthermore, the weekly Stochastic RSI is now in excessive oversold territory and this means that promoting strain has already finished a lot of its work.
Steph’s analysis famous that turning factors have a tendency to type when draw back momentum is exhausted and there’s little power left for sellers to continue pushing price decrease. Based on this, merchants can count on XRP to transition into bullish momentum in early 2026.
Featured image from Gemini, chart from TradingView
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