XRP is trading around $1.34 after a modest gain, even as 7.03 billion tokens left exchanges in February, signaling a significant tightening of available supply. The Binance scarcity indicator climbed to 0.59, its highest level since 2024, highlighting the reduced sell-side liquidity.
Despite this outflow, XRP has struggled to break above the $1.34-$1.35 resistance zone, with repeated attempts failing to produce a decisive rally. Trading volume is currently about 29% above the weekly average, suggesting active positioning among buyers and sellers, yet price action remains muted.
Technical Setup and Key Levels
Analysts note that the mismatch between shrinking supply and limited price movement often resolves in a sharper directional move. Buyers have defended dips near $1.31-$1.32, establishing higher lows and maintaining structural support. Immediate resistance lies at $1.34-$1.35, with a successful break potentially opening the path toward $1.42 as the next upside target.
The current setup indicates that while supply is tightening and accumulation may be occurring, sellers are still capping rallies, keeping the market in a compression phase. Observers are watching for a decisive breakout to confirm a sustained trend change.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.
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