XRP’s Exchange Balances Soar: Sell-Off Alert!

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XRP’s price has taken a dive below $2, wiping out nearly all the gains since the start of the year. A true testament to the resilience of market sentiment, or perhaps a reminder that even the most optimistic investors can be wrong.

The pullback coincides with global tensions, sending investors scrambling to the safety of risk-off positions. But don’t worry, analysts are still optimistic about XRP in 2026-because who needs a crystal ball when you have a spreadsheet?

XRP Exchange Reserves and Whale-to-Exchange Activity Surge in January

According to the all-knowing data from CryptoQuant, XRP reserves on Binance and Upbit have skyrocketed in January 2026. A true marvel of market dynamics, or perhaps a sign that the universe is trying to tell us something.

The chart reveals that investors have been transferring XRP to exchanges like it’s a new religion. Binance now holds 2.72 billion XRP, Upbit 6.3 billion. Together, they hold almost 10% of the circulating supply. A true testament to the power of collective decision-making.

An inverse correlation between Upbit balances and XRP price has emerged. As Upbit’s reserves rose, XRP dropped from $2.40 to $1.83. Korean investors, ever the enigmatic force, continue to shape XRP’s destiny with their mysterious ways.

Another on-chain metric, Whale Exchange Transactions, measures how actively whales move their coins. A true spectacle of market activity, or perhaps a sign that the whales are preparing for a grand migration.

Rising exchange reserves and increased whale transactions could mean more selling pressure. The data suggests that whales are preparing to flood the market. A thrilling prospect for the uninitiated.

XRP ETFs have had only two days of outflows since their November 2025 launch. The first was January 7, with $40.80 million withdrawn. The second, and largest ever, on January 20, with $53.32 million from Grayscale’s GXRP. The selloff was triggered by President Trump’s tariff threats, a reminder that even the most mundane events can send markets into a tailspin.

BeInCrypto’s analysis suggests that stalled inflows and negative trends often signal a pause in institutional demand. A true revelation, or perhaps just a warning from the market’s cryptic oracle.

XRP has erased its early-year gains, now hovering near the $1.88 support level. Analysts warn that a breakdown could trigger a 45% drop, pushing the price below $1. A cliffhanger for the unprepared.

Despite the risks, positive factors may help XRP. Token Relations reports improved XRP ETF volumes and rising DeFi demand. A ray of hope in a sea of uncertainty.

“December 2025 saw $483 million in XRP ETF inflows, while Bitcoin ETFs had $1.09 billion in outflows. This suggests a shift from Bitcoin to XRP. Trading liquidity is robust, and adoption is exceeding expectations. A true sign of institutional confidence, or perhaps a case of ‘buy the dip’ gone rogue.”

Despite the two outflow days, net inflows are still at $1.23 billion. Analysts say the outflows are macro-driven, not a sign of waning sentiment. A comforting thought, or perhaps a reminder that the market is a fickle mistress.

Ripple is expanding RLUSD’s use cases through partnerships. Positive developments that could support XRP’s price. If it holds above $1.88, a retest of $2.40 is possible. But if it breaks below, the focus shifts to $1.25. A classic ‘if’ scenario, where the market’s mood is as unpredictable as a British summer.

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2026-01-26 12:07