Recent weeks have seen striking developments in the XRP market. Evernorth, the largest publicly traded institution managing XRP assets, highlighted a pronounced tightening in supply and revealed a new analysis focusing on a sharp decrease in exchange-held XRP and a steady increase in large investors’ wallet balances.
Historic outflow from exchanges
More than 7 billion XRP were withdrawn from exchanges in February. This move marks the biggest single-month outflow of XRP since November 2025. The scale of these transfers is significant and directly impacts the liquid supply, as exchange balances represent tokens readily available for sale. When large holders, or so-called “whales,” transfer their assets off exchanges to cold storage, those tokens become effectively unavailable for short-term selling, reducing sell pressure in the market.
Historical data indicates that such large withdrawals are usually linked to a long-term holding mindset rather than speculation. According to analysts, the ongoing outflows from exchanges since the start of the year point to an accumulation strategy, not an intent to sell.
Broad participation and growing demand
Early April data confirms that major players continue to amass XRP at a significant pace, with these investors reportedly accumulating about 11 million XRP daily. Not only have whale wallets increased, but mid-sized wallets—holding between 1,000 and 100,000 XRP—have also reached all-time highs, now totaling 1.1 million addresses. This trend suggests that accumulation is not limited to a few large holders but involves a wider community of investors joining in.
In Evernorth’s words: “The rapid decrease of XRP on exchanges, coupled with growth across various wallet sizes, shows widespread accumulation happening at all investor levels—not just by a handful of big funds.”
Such a landscape is typically seen during periods of supply squeeze in the market. When available supply is limited and buyers multiply, even modest increases in demand can trigger swift price movements.
Price consolidation and institutional moves
XRP’s price has mirrored these supply dynamics and recently entered a phase of consolidation. The cryptocurrency has been trading in a narrow band between $1.38 and $1.42. Analysts describe this zone as a core area for buyers who are accumulating holdings. If the price breaks above this range, resistance levels between $1.55 and $1.72 are seen as the next targets.
Alongside this tightening supply, new institutional measures have also captured attention. Coinbase will introduce a “Trade at Settlement” (TAS) feature for XRP futures starting May 1, 2026. This tool will allow institutional clients to open or close XRP futures positions at the end-of-day closing price. The aim is to reduce short-term volatility risk for large trades and achieve more precise pricing.
In summary, the simultaneous drop in exchange XRP balances and the strengthening long-term accumulation trend signal a pivotal moment for XRP. Analysts warn that this configuration could lead to a “supply crunch” effect, resulting in sharper price swings in the near future.
