XRP outflows counter exchange inflow as support watched

XRP saw a sharp reversal in exchange activity after on-chain data showed more tokens leaving trading platforms than had recently entered them.

Santiment data indicated that 25.24 million XRP moved off exchanges between 29 May and 30 May.

The outflow came shortly after XRP recorded its largest exchange inflow of the year.

Santiment reported that 22.80 million XRP had been sent to exchanges on Thursday.

The timing attracted market attention because large exchange inflows often suggest that holders may be preparing to sell.

However, the later outflow showed that some holders quickly moved XRP back into private wallets or self-custody.

The movement created a mixed signal for traders trying to assess whether selling pressure had already peaked.

Santiment said the large inflow happened near a local bottom for XRP’s price.

The firm suggested that many retail traders appeared to sell during XRP’s weakest price level in 15 weeks.

XRP later gained about 5% from that capitulation point, leaving some sellers regretting their timing.

The rebound remained modest, but it gave traders fresh reason to watch whether XRP could build a stronger recovery.

Previous on-chain readings showed that the average active XRP trader over the past 30 days was down about 47%.

XRP’s 30-day MVRV ratio also fell to its lowest level since December 2020.

A low MVRV reading can suggest that many traders are sitting on losses and may be close to capitulation.

Market sentiment around XRP had already weakened before the latest exchange movements.

Santiment data showed that XRP commentary had turned negative, with only 1.1 bullish comments for every bearish comment.

Historically, extreme fear and weak sentiment have sometimes appeared before strong XRP rebounds.

Traders are now watching whether the latest outflows and negative sentiment could support a short-term reversal.

At the time of the report, XRP was trading at $1.33 after falling 0.33% over the previous 24 hours.

Crypto analyst Ali said he was watching the bottom of XRP’s rising channel at $1.34 as a possible buying zone.

If XRP holds that area, traders may look towards $1.37 and $1.40 as potential upside targets.

The price setup remains uncertain because exchange flows, trader losses, and sentiment signals can change quickly.

For now, XRP’s latest on-chain activity suggests a divided market, with some traders selling into weakness while others move tokens away from exchanges.

At the time of reporting, XRP price was $1.34.