XRP Exchange Withdrawals Hit Multi-Year High as Selling Pressure Fades

XRP exchange withdrawals have reached their highest level since February 2021, signaling that holders may be unwilling to sell in large numbers. The strong spot STF inflows of nearly $6 million for XRP on July 30 also indicate some investor conviction.

The price action was dominated by sellers, but the total net assets were at $1 billion. Onchain suggests a consolidation phase and reduced leverage could lead to healthier market conditions in the future.

Data from CryptoQuant showed that XRP withdrawal transactions reached their highest since February 2021, while deposits fell to their lowest level since 2021. This shift accelerated towards the end of July, indicating potentially increased accumulation.

Crypto analyst Darkfost observed that the average monthly XRP inflows to the platform now stand at around 3.6 million XRP, which is the lowest monthly inflow figure on record. Combined with heightened withdrawals, the onchain metrics pointed toward holders unwilling to sell XRP in large numbers.

The estimated leverage ratio tracks the ratio of Open Interest to exchange reserves of the asset. The falling ELR underlined deleveraging in the market, which can give XRP more room to consolidate and offer a more stable derivatives market.