XRP, exchange volume evaporates...115 million outflow triggers surge signal

▲ XRP

XRP has seen a massive outflow from spot exchanges over the past 24 hours, raising the possibility of demand recovery. According to CoinGlass data, XRP spot outflows during this period reached $115.02 million, exceeding spot inflows of $99.41 million.

U.Today reported on May 9 that XRP withdrawals from spot exchanges amounted to $115.02 million over the past 24 hours. Consequently, XRP's spot net flow recorded -280.65%. The outflow of coins from exchanges can be interpreted as a signal that investors are moving their holdings to external wallets for long-term holding or accumulation purposes, rather than keeping them on exchanges for short-term selling.

Open interest also increased. According to CoinGlass data, XRP open interest rose by 3.96% over the past 24 hours, reaching $2.96 billion. Open interest is an indicator representing the size of derivative positions that have not yet been closed, and it is interpreted as an increase in market participation and expectations for volatility.

The exchange outflow coincided with an increase in XRP ETF inflows. According to SosoValue data, XRP recorded a net inflow of $6.04 million on May 8. U.Today reported that the increased exchange outflow could signify quiet accumulation by whales or institutions, and it might be a trend of building positions ahead of a potential catalyst.

However, U.Today also offered a cautious interpretation. It explained that exchange outflows do not necessarily imply direct buying pressure and could result from internal wallet reallocation, changes in custody structures, or over-the-counter (OTC) transactions. Therefore, it is difficult to conclude a bullish outlook based solely on exchange outflows.

At the time of writing, XRP was trading at $1.41, up 2.22% over the past 24 hours. U.Today reported that XRP showed a positive trend as the broader cryptocurrency market turned bullish.

Regarding technical trends, the possibility of increased volatility was discussed. U.Today reported that while XRP remains in a consolidation range, narrowing volatility and decreasing liquidity are creating the potential for a stronger breakout. Analysts cited bull flags, falling wedge patterns, XRP ETF inflows, and a weakening Binance order book as reasons for potential increased volatility.

Traders are focusing on the resistance zone between $1.43 and $1.51, and the support level at $1.38, near the daily 50-day moving average. Analysis suggests that if XRP surpasses $1.51, it could rise to $1.60 and further to $1.73. There are also predictions of increased market volatility next week, following reports that the Senate Banking Committee has scheduled a markup on May 14 to advance key cryptocurrency market structure legislation.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*