Ripple-linked token holds $1.34 as supply tightens

XRP is seeing large amounts of tokens leave exchanges, reducing available supply — but price isn’t responding yet. The token is hovering near $1.34 after a modest gain, creating a disconnect between tightening supply and muted price action that typically doesn’t last.

News Background

• XRP edged higher to $1.34 with volume rising 29% above its weekly average
• Around 7.03 billion XRP left exchanges in February, signaling supply compression
• Binance scarcity indicator climbed to 0.59, its highest level since 2024

Price Action Summary

• Price traded in a tight range, repeatedly testing the $1.33-$1.34 zone
• Early breakout attempts failed, with resistance forming just above current levels
• Buyers defended dips near $1.31, establishing a sequence of higher lows
• Late-session action showed steady buying, but no decisive follow-through

Technical Analysis

• The key setup is a mismatch: supply is tightening, but price isn’t expanding
• Large outflows usually reduce sell pressure, yet sellers are still capping rallies
• Elevated volume without price expansion points to positioning rather than conviction
• This kind of compression typically resolves with a sharper directional move

What traders should watch

• $1.34-$1.35 is the immediate trigger — a break opens room toward $1.42
• $1.31-$1.32 remains the key support zone holding structure intact
• If price continues to stall despite shrinking supply, it suggests sellers are still active overhead