XRP Faces Renewed Selling Pressure Despite Stable Exchange Reserves

XRP Stabilizes, But Market Signals Turn Mixed

XRP is showing signs of stabilization after months of declining exchange reserves, but fresh on-chain data suggests the market may be entering a new phase of uncertainty.

Exchange reserves, which had been falling steadily throughout the past year, have now bottomed out near 2.75 billion tokens. At the same time, XRP’s price has hovered around the $1.40 level, reflecting a period of relative equilibrium between buyers and sellers.

While this stabilization initially pointed to reduced selling pressure, more recent metrics indicate that the balance may be shifting again — and not entirely in favor of bulls.

Whale Activity Slows as Retail Takes the Lead

One of the most notable changes in XRP’s market structure is the decline in whale dominance.

Previously, large holders played a significant role in driving accumulation trends. However:

Whale activity has cooled
Aggressive accumulation has slowed
Market participation is shifting toward retail investors

This transition matters because retail-driven markets tend to:

Be more volatile
React faster to sentiment changes
Lack the stability provided by long-term institutional positioning

Additionally, spot ETF inflows, which supported XRP’s mid-April recovery, remain a key variable. If inflows return, they could provide renewed upside momentum. If not, the market may struggle to sustain gains.

Network Activity Surges — But Not All Signals Are Bullish

Data from CryptoQuant highlights a sharp increase in XRP network activity since mid-April.

After a prolonged downtrend, activity:

Reversed sharply
Continued rising for three consecutive weeks
Indicates renewed user engagement

However, higher activity does not automatically translate into bullish momentum.

A closer look reveals a more complex picture.

Deposits vs Withdrawals: A Shift Toward Selling Pressure

Historically, withdrawals from exchanges are seen as bullish (tokens moving to private wallets), while deposits to exchanges often signal potential selling.

Recent trends show:

Withdrawal transactions dominated through late March and early April
This trend extended into early May
However, deposit transactions have recently begun to outpace withdrawals

This shift suggests that: More tokens are being moved onto exchanges Traders may be preparing to sell

Even as total transaction activity rises, the composition of that activity is turning bearish.

Exchange Net Position Change Confirms Bearish Bias

Further confirmation comes from data by Glassnode.

The exchange net position change tracks whether more tokens are entering or leaving exchanges over time.

Current readings show:

A positive net position change
Increased inflows of XRP to exchanges
Higher likelihood of selling pressure building

This metric is particularly important because it reflects actual supply movement, not just sentiment.

Price Action Meets Strong Resistance at $1.50–$1.60

From a technical perspective, XRP continues to face a major supply zone between $1.50 and $1.60.

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Recent price behavior highlights this challenge:

XRP reached a local high of $1.51 on April 17
The move was quickly rejected
Price retraced to around $1.36

This rejection was not random.

It coincided with a spike in Coin Days Destroyed (CDD) — a metric that tracks when long-held tokens are moved.

Coin Days Destroyed: A Key Signal to Watch

CDD provides insight into the behavior of long-term holders:

High CDD: Older coins are being moved → potential selling
Low CDD: Long-term holders remain inactive → reduced selling pressure

At the time of writing:

CDD remains relatively low
No major wave of long-term holder selling has begun

This creates a nuanced scenario:

Short-term selling pressure is rising
But long-term holders are not yet exiting positions

Short-Term Outlook: Risk of Another Pullback

Despite a modest 4.25% price increase since late April, XRP’s current structure suggests that risks remain.

Key factors pointing to potential downside:

Rising exchange deposits
Positive net position change
Strong resistance at $1.50–$1.60
Shift from withdrawals to deposits

These signals collectively indicate that: XRP may face another wave of selling pressure in the short term

Bullish Counterpoints: Why the Downside May Be Limited

It’s not all bearish.

Several factors could help support XRP:

Stabilized exchange reserves (no major outflows)
Increasing network activity
Low CDD (long-term holders not selling aggressively)
Potential return of ETF-driven inflows

If these elements align, XRP could:

Absorb selling pressure
Consolidate above current levels
Attempt another breakout toward resistance

Market Structure: A Tug-of-War Between Buyers and Sellers

The current XRP market can best be described as a tug-of-war:

Bullish forces:

Growing network activity
Stable reserves
Long-term holder confidence

Bearish forces:

Rising exchange inflows
Increasing deposit transactions
Strong overhead resistance

This balance explains why price action has remained relatively range-bound, despite increased activity.

Conclusion: XRP at a Critical Inflection Point

XRP’s recent stabilization marks an important shift after months of declining reserves and changing market dynamics.

However, the latest data suggests that:

Selling pressure may be quietly rebuilding
Resistance levels remain strong
Market direction is far from decided

In the short term, XRP is likely to remain sensitive to shifts in demand, particularly from retail participants and ETF flows.

A breakout above $1.50 would signal renewed strength. Failure to do so could lead to another pullback.

For now, XRP sits at a critical inflection point, where the next move will depend on whether buyers can absorb the growing supply entering exchanges — or whether sellers regain control.