XRP (XRP) is trading in a key “value zone” where whales recently accumulated $170 million, signaling a tightening liquidity supply.
Key points to remember:
- XRP whales withdrew 122 million
- FX outflows and consistent inflows from spot XRP ETFs indicate a tightening liquidity supply and growing investor demand for XRP.
- XRP price could target $2.33 if bulls break above the $1.50 resistance, with Bollinger bands signaling major progress.
122 million XRP leaves Binance exchange
Withdrawals of XRP whales, which represent large outflows above 1 million coins per transaction, reached 122 million on Binance on May 22, worth around $170.8 million at current rates, according to data from CryptoQuant.
This is the first daily withdrawal above 100 million XRP since the 278 million XRP seen in early February.
“What makes the latest move more important is the price context,” CryptoQuant analyst Amr Taha. said in a Monday Quicktake article.
Note that the February 9 withdrawal peak occurred when XRP was trading near $1.43, while the May 22 peak occurred with XRP around $1.35.
“This makes the $1.35 to $1.40 range an important area to watch for XRP,” the analyst said. said in another Quicktake article, adding:
“Repeated pullbacks near the same price range may indicate that some large players view this as a valuable area.”
XRP: whales exit exchanges. Source: CryptoQuant
This coincided with strong currency outflows, with the net change in XRP position between exchanges falling to -$30 million on Sunday, its most negative value since April 9, when the price was trading at $1.28. This preceded a 17% rise to $1.51 on April 17.
XRP: change in net exchange position
Such outflows typically indicate strong accumulation by large holders, who move tokens into cold storage or increase their exposure to XRP bullion products, thereby reducing immediate pressure on the sell side.
Meanwhile, demand for US-based spot XRP ETFs continues, with these investment products seeing positive flows for 16 consecutive days, totaling $116.75 million. This indicates continued demand from US investors, reinforcing XRP’s tailwinds.
Spot ETH ETF Flow Chart. Source: SoSoValue
XRP Price Must Hold $1.30 as Support
The XRP/USD pair has been trading in a tight range between $1.30 and $1.50 since early February.
XRP’s uptrend now depends on holding $1.30 as support if it “has another chance to retest the $1.50 resistance,” according to analyst ChartNerd. said in a recent article on X.
“$1.30 is a current guardrail,” the analyst said, adding:
“In the event of a loss, a further decline towards the lower $1 territory is likely in the coming weeks.”
XRP/USD daily chart. Source: X/ChartNerd
The chart below shows that the altcoin traded in a multi-year range between May 2022 and November 2024. Eventually, a breakout above the upper limit of the range at $0.68 marked the start of a rally of over 400% to $3.40 in January 2025.
If the XRP/USD pair holds within its current range, a similar upward move could be seen once a decisive move supported by strong volume above the upper limit of $1.50 is reached.
XRP/USD three-day chart. Source: Cointelegraph/Trading View
Bollinger Bands are still at their tightest level since mid-2024. Similar events have already led to an increase in the price of XRP of between 58% and 82%, as shown in the chart above.
As such, XRP could reach $2.33 if a similar breakout occurs.
Crypto Analyst Patel referred to the current range as the “best accumulation zone”, adding that the moderate price action resembles the calm before its major breakout at the end of 2024.
The analyst forecasts an upside target at $10, implying a potential of around 7x from the lower end of the accumulation range if XRP repeats its 2022-2024 cycle-like expansion.
XRP/USD two-week chart. Source: X/CryptoPatel
Like Cointelegraph reportedOverhead resistance between $1.40 and $1.50 is likely to keep the price in consolidation if not broken.
