The broad crypto market has seen a sudden flip in investor sentiment as the prices of leading cryptocurrencies, including XRP, have seen notable daily increases.
Amid the rising bullish momentum, XRP’s exchange activities have taken a contrary twist, showing signs of increased sell pressure despite an ongoing price surge.
On Thursday, Feb. 26, crypto analytics platform Cryptoquant provided on-chain data from the XRP Ledger, revealing a 10.58% increase in the XRP exchange reserve over the last 24 hours.
Exchange reserve soars past 2.77 billion XRP
The data further revealed that the total XRP held on exchanges like Binance and others have surged to about 2,778,900,000 XRP worth a massive $3.98 billion. This marks a 7.29% increase in the asset’s exchange reserve over the last 24 hours.
It is important to note that increases in exchange reserves are often a strong signal of bearish sentiment. It typically means that more tokens are being moved to crypto trading platforms, which is most likely a precursor to selling activity.
You Might Also Like
The surge in the XRP exchange reserve comes as a surprise as the asset is currently trading in bullish territory, showing a notable daily price surge.
Nonetheless, investors selling off their assets at a time like this suggests that they may be positioning their assets for potential liquidation.
XRP supply expands
Following the sharp increase in the XRP exchange reserve, the data further showed that its exchange supply share has surged notably by 7.22%.
This surge in the exchange supply indicates that a growing proportion of circulating XRP is now sitting on exchanges rather than in private wallets.
Nonetheless, the current XRP price action could be largely attributed to investors’ sentiment as sustained exchange activity often precedes volatility-driven breakouts. Thus, it is currently uncertain how long the ongoing price rebound could last.