XRP, which attracts attention in the cryptocurrency market, has been decreasing its supply with the recent withdrawal of large amounts of coins from the exchanges. In contrast, the expected upward momentum in price movement has not yet been seen. As XRP approached the $1.34 level in recent transactions, there was a significant increase in transaction volume.
Supply contraction and price unresponsiveness
The fact that approximately 7.03 billion XRP left the exchanges in February was evaluated by market players as a shrinking supply. Despite this, XRP is trading in a relatively narrow band between $1.33 and $1.34. The scarcity indicator monitored on the Binance exchange reached the highest level of 2024, reaching 0.59.
Price behavior revealed that despite the tightening in supply, an upward movement has not yet occurred. Early exit attempts in the previous days did not yield results because the buyers did not show enough strength at the current resistance levels. Investors did not allow a lower bottom to be formed by opening buy positions at the points where the price dropped to around $1.31.
Support and resistance zones
According to analysis, the XRP price finds support in the region corresponding to the range of 1.31 to 1.32 dollars. On the other hand, the range between 1.34 and 1.35 dollars is watched as short-term resistance. It is stated that if this level is exceeded, the price may move towards $ 1.42.
While it is noteworthy that the transaction volume increased by 29 percent above the weekly average in the recent sessions, the horizontal movement of the price despite this increase indicates that the positioning in the market has intensified. Despite the increase in volume, the price did not show an upward break, indicating that the market had not determined a clear direction yet.
Reaction buying and short-term recoveries during the day caused the price to remain within the narrow range. The sellers’ suppression of upside attempts stands out as the main obstacle to XRP entering a significant uptrend.
Generally, with this type of supply contraction, sharper directional changes in price movements can be observed. However, looking at the current picture, it seems that buyers are having difficulty increasing the momentum.
