Rising Exchange Inflows Weigh on XRP Despite Short-Term Price Surge – Can XRP Regain $2?

The XRP price has surged 2% in the last 24 hours, briefly jumping to $1.91 before falling back to around $1.86, with the daily trading volume up 70% to $2.25 billion.

On-chain data shows that rising inflows into major exchanges are adding selling pressure to the token. According to CryptoQuant, XRP inflows into exchanges increased sharply from mid-December, reaching levels last seen during the October market crash.

Binance recorded especially large deposits, with daily XRP inflows ranging between 55 million and 116 million tokens. This trend points to renewed selling activity, similar to earlier periods marked by whale distribution and broader market uncertainty.

XRP Exchange Inflow on Binance. Source: CryptoQuant

South Korean exchanges, including Upbit and Bithumb, also reported heavy XRP inflows, reinforcing concerns about ongoing distribution. Although overall exchange reserves are declining, the rising inflow data suggests many investors are moving XRP to exchanges with the intention of selling.

Exchange Inflow on Upbit. Source: CryptoQuant

Meanwhile, spot XRP ETF inflows have failed to support the price, despite total net inflows of $1.14 billion and assets under management of $1.25 billion.

Some analysts warn the price could drop toward $1 if key support near $1.80 breaks, as bearish sentiment grows in both spot and derivatives markets.

XRP Price Action Shows Early Signs of Bullish Reversal

The XRP/USDT chart shows a long period of consolidation followed by signs of a possible bullish reversal. From February to May, XRP mostly traded sideways between support at $1.80–$1.85 and resistance near $2.45.

In mid-July, XRP broke above $2.45 and surged to around $3.50. After this spike, the price entered a descending channel (highlighted in orange), showing a controlled decline with lower highs and lower lows, typical of a corrective trend. XRP stayed in this channel until October, when a sharp selloff pushed the price below previous support, causing temporary panic.

XRP has formed a rounded bottom, a classic reversal pattern. This indicates selling pressure is easing, while buyers are slowly accumulating. The rounded shape indicates a gradual shift from bearish to bullish sentiment.

XRPUSDT Chart Analysis. Source: Tradingview

The RSI (14) is around 39, slightly below neutral, signaling the market is near oversold but starting to stabilize, supporting a potential bullish reversal. The upside target for this rounded bottom is near the previous resistance zone at $2.50–$2.60.

A confirmed breakout above this level, ideally with higher trading volume, would validate the bullish reversal and could push XRP toward $3.00. Traders should watch price action and RSI, as a sustained move above resistance is key for strong upward momentum.

XRP has moved from a bearish correction to consolidation and now shows early signs of a bullish reversal with a rounded bottom. This setup points to a potential rise toward $2.50, but confirmation above resistance is needed before taking aggressive long positions