XRP remains near $1.34 amid shrinking supply, but upward momentum remains elusive.

XRP Supply Tightens, but Price Struggles to Gain Momentum

XRP is showing strong signs of accumulation as record outflows reduce available supply, yet the price remains stuck near $1.34, leaving the setup unresolved. The disconnect between shrinking liquidity on exchanges and muted price action highlights lingering resistance overhead.

Market Highlights

• XRP rose to $1.34, with volume 29% above its weekly average.
• February saw 7.03 billion XRP leave exchanges, compressing supply.
• Binance scarcity indicator climbed to 0.59, the highest since 2024.

Price Action

• Trading has been confined to $1.33–$1.34, repeatedly testing resistance.
• Breakout attempts stalled as sellers capped gains above current levels.
• Buyers defended dips near $1.31, creating higher lows.
• Late-session buying was steady but lacked follow-through.

Technical Insight

• Supply is tightening, yet price expansion remains limited.
• Outflows usually reduce selling pressure, but overhead resistance persists.
• Elevated volume without movement suggests positioning, not conviction.
• Such compression often precedes a decisive directional move.

Key Levels

• Upside trigger: $1.34–$1.35, which could open the path to $1.42.
• Support: $1.31–$1.32, crucial to maintain the current structure.
• Stagnation despite shrinking supply may indicate active sellers above.

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