 ▲ XRP (XRP) / ChatGPT-generated image |
XRP is undergoing a price revaluation after experiencing a correction of more than 60% following its recent sharp decline, while exchange-held reserves have plunged to an all-time low, raising the possibility of a supply shock.
According to cryptocurrency-focused outlet NewsBTC on March 7 (local time), XRP peaked above $3.40 in mid-2025 before entering a prolonged downtrend, falling more than 60% from its high to trade below $1.35. Despite the steep correction, XRP holdings on exchanges dropped sharply to approximately $3.9 billion as of March 6, signaling a significant shift in market supply dynamics. The outlet analyzed that the large-scale outflow of assets from exchanges is creating conditions that could ease selling pressure and support price stabilization.
From a technical analysis perspective, XRP recently fell as low as the $1.20 range amid the sharp downturn but is now undergoing a consolidation phase between $1.30 and $1.45 as buying interest emerges. However, it remains below the 50-day, 100-day, and 200-day moving averages, indicating that the overall trend is still downward. To signal a full-fledged recovery, XRP must reclaim these declining moving averages sequentially, with a breakout above $1.50 seen as key to securing short-term upward momentum.
Declining liquidity on exchanges is viewed as a factor that could accelerate a price rebound if demand increases, as reduced supply may trigger scarcity. Activity on the XRP Ledger remains steady, and assets moving off exchanges tend to reflect long-term holding behavior, reducing sell-side pressure in the market. Currently, XRP is gathering energy between a descending resistance line and a stabilizing support level, and experts anticipate significant volatility once this supply-demand imbalance resolves.
Recent developments such as Australia’s decision to utilize the XRP Ledger for its digital dollar initiative and U.S. spot XRP ETF inflows reaching a four-week high are strengthening fundamentals. Even as broader market volatility persists, including in Bitcoin (BTC), XRP’s relatively solid infrastructure usage is serving as a price support factor. Investors are closely monitoring the defense of support between $1.25 and $1.30, as well as the process of reclaiming the long-term resistance level formed near $2.00.
XRP is currently going through a painful revaluation process and a supply cleansing phase in preparation for the next upward cycle. Whether positive factors such as exchange liquidity depletion and institutional adoption can offset technical headwinds from falling prices will be crucial in determining the market’s direction. Cryptocurrency market experts expect that once the current consolidation phase concludes, XRP could enter a new stage of price discovery. While higher time frame analysis still calls for caution, indicators emerging near the bottom suggest the possibility of a long-term recovery.
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