Over $1.32B in XRP left exchanges in 30 days, with reserves dropping nearly 19%, signaling tightening liquidity.
XRP price continues range-bound and weak near $2, while ETF inflows show institutions accumulating even as retail sentiment softens.
Analysts say the latest rejection is normal consolidation, noting XRP remains structurally intact.
XRP exchange-held reserves have fallen sharply over the past month, with on-chain data showing more than $1.32 billion worth of XRP exiting centralized platforms between November 10 and December 10, 2025.
CryptoQuant data show that XRP reserves were valued at $7.03 billion on November 10, with the token trading around $2.50. By December 10, reserves had dropped to $5.70 billion, marking an 18.83% decline over 30 days.
The sharp reduction indicates a notable shift in trader behavior, suggesting large-scale withdrawals, reduced speculative exposure, or broader risk management amid ongoing volatility.
Volatile Reserve Trends Suggest Market Caution
On-chain data highlights uneven reserve activity throughout the month. XRP reserves experienced a steep decline in early November, followed by a brief recovery toward the end of the month, and then renewed weakness entering December.
This pattern implies that market participants may be de-risking, securing profits, or moving assets away from exchanges amid uncertainty. The shifting reserve levels match XRP’s price turbulence, as the asset repeatedly tests significant support areas without sustaining upward momentum.
Liquidity Tightens as Market Conditions Weigh on XRP
The drop in exchange reserves signals tighter liquidity across trading venues. With fewer tokens available, the market becomes more vulnerable to large price swings, and even moderate buying or selling pressure can move the price more aggressively.
XRP continues to struggle to maintain the $2.00 support region, reflecting broader weakness in the cryptocurrency market. This decline comes despite sustained inflows into U.S. XRP spot ETFs, suggesting institutions are still accumulating even as retail investors appear more cautious.
Analyst Calls the Rejection “Expected” Amid Range Trading
Popular crypto analyst ChartNerd commented on XRP’s latest technical rejection at a key dynamic level.
His analysis shows XRP trading within a broad multi-month range, bounded by a resistance block at the top and a support block at the bottom. Price recently touched the mid-range resistance, coinciding with long-term moving averages, before pulling back.
ChartNerd described the move as routine, stating, “XRP WEMA rejection was expected. This is just the usual TR chop. No biggie. No concerns.” The analysis indicates that the current rejection aligns with normal consolidation behavior and does not suggest deeper structural weakness in the chart.
$XRP WEMA rejection was expected. This is just the usual TR chop 🪓 No biggie. No concerns. https://t.co/uf9GGTNuvQ pic.twitter.com/3zmX3qMeGM
— 🇬🇧 ChartNerd 📊 (@ChartNerdTA) December 9, 2025
Short-Term Pressure Persists, but Structure Remains Intact
The combination of falling exchange reserves and XRP’s inability to reclaim key price levels creates a mixed short-term outlook. Liquidity is tightening, price action remains sluggish, and market sentiment is cautious.
At the same time, ETF inflows demonstrate steady institutional interest, and technical analysts argue that XRP continues to move within its established multi-month range without breaking its broader structure.
As supply on exchanges continues to shrink, analysts note that a potential supply squeeze could emerge if renewed demand enters the market.
For now, XRP remains in a holding pattern, with traders watching closely to see whether diminishing liquidity will amplify its next major move.