- Santiment reported 25.24 million XRP leaving exchanges after major inflows.
- XRP traders faced 47% losses as sentiment reached extreme lows.
- Analysts monitor $1.34 support level as recovery hopes gradually build.
Santiment reported that 25.24 million XRP moved off exchanges between May 29 and May 30, reversing a major inflow that had sent 22.8 million XRP onto trading platforms only a day earlier and signaling a notable shift in trader behavior during a period of heightened market uncertainty.
According to Santiment, the 22.8 million XRP deposited on exchanges on May 28 represented the largest exchange inflow recorded this year, as many holders transferred tokens to trading platforms while XRP hovered near its lowest price level in approximately 15 weeks.
However, the direction of exchange flows changed quickly, with an even larger amount of XRP leaving exchanges shortly afterward, suggesting that investors reassessed their positions as market conditions stabilized and selling pressure began to ease.
The analytics platform noted that the large inflow arrived near XRP’s local bottom, meaning many traders moved assets to exchanges and sold during one of the weakest periods for the asset in recent months. Since that capitulation event, XRP has posted a modest recovery of around 5%, indicating that some market participants exited positions shortly before prices began to recover.
Exchange balances remain one of the most closely watched on-chain indicators because they can provide insight into investor intentions. When large amounts of cryptocurrency leave exchanges, holders are often moving assets into private wallets rather than preparing them for immediate sale, which can reduce the supply available on trading platforms.
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Extreme Losses and Negative Sentiment Weigh on XRP Holders
The recent exchange activity occurred as XRP traders faced growing unrealized losses across the market. Santiment reported that the average XRP trader who has been active over the last 30 days is currently down approximately 47%, reflecting the impact of the asset’s extended decline.
Moreover, XRP’s 30-day Market Value to Realized Value ratio dropped to its lowest level since December 2020, highlighting the extent of losses experienced by many market participants and underscoring the pessimistic mood that has developed around the asset.
According to Santiment, positive commentary surrounding XRP nearly matched negative commentary before the latest outflow event, with the ratio falling to just 1.1 bullish comments for every bearish comment, a level that reflected growing frustration among traders.
Despite the negative backdrop, Santiment noted that similar conditions have historically appeared before stronger XRP recoveries, as periods of extreme pessimism often coincide with market bottoms and eventual reversals.
Additionally, crypto analyst Ali identified the lower boundary of XRP’s rising channel near $1.34 as a key technical level that traders continue to monitor closely. According to Ali, maintaining support around that area could allow XRP to target $1.37 and potentially extend toward $1.40 if buying momentum strengthens.
Traders Monitor Supply Changes for Recovery Signals
At the time of writing, XRP traded around $1.33, down 0.33% over the previous 24 hours. Even so, market participants continue tracking exchange balances and sentiment indicators closely, as the withdrawal of more than 25 million XRP has added another layer to the ongoing debate surrounding the asset’s short-term direction.
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