The broad crypto market has seen a sudden flip in investor sentiment as the prices of leading cryptocurrencies, including $XRP, have seen notable daily increases.
Amid the rising bullish momentum, $XRP’s exchange activities have taken a contrary twist, showing signs of increased sell pressure despite an ongoing price surge.
On Thursday, Feb. 26, crypto analytics platform Cryptoquant provided on-chain data from the $XRP Ledger, revealing a 10.58% increase in the $XRP exchange reserve over the last 24 hours.
Exchange reserve soars past 2.77 billion $XRP
The data further revealed that the total $XRP held on exchanges like Binance and others have surged to about 2,778,900,000 $XRP worth a massive $3.98 billion. This marks a 7.29% increase in the asset’s exchange reserve over the last 24 hours.
It is important to note that increases in exchange reserves are often a strong signal of bearish sentiment. It typically means that more tokens are being moved to crypto trading platforms, which is most likely a precursor to selling activity.
The surge in the $XRP exchange reserve comes as a surprise as the asset is currently trading in bullish territory, showing a notable daily price surge.
Nonetheless, investors selling off their assets at a time like this suggests that they may be positioning their assets for potential liquidation.
$XRP supply expands
Following the sharp increase in the $XRP exchange reserve, the data further showed that its exchange supply share has surged notably by 7.22%.
This surge in the exchange supply indicates that a growing proportion of circulating $XRP is now sitting on exchanges rather than in private wallets.
Nonetheless, the current $XRP price action could be largely attributed to investors’ sentiment as sustained exchange activity often precedes volatility-driven breakouts. Thus, it is currently uncertain how long the ongoing price rebound could last.
