XRP has been making headlines lately due to a fascinating trend: the diminishing availability of tokens on exchanges. Recent data shows that the supply of XRP has dwindled, raising questions about its price trajectory as it continues to hover below the $2 mark.
XRP Exchange Supplies Drop Significantly
Current figures indicate that XRP supply on exchanges has plummeted, hitting levels reminiscent of eight years ago. Despite this significant drawdown, the token remains below the crucial $2 threshold. According to various analytics platforms, exchanges are currently holding just around 1.6 million XRP, representing a decline of nearly 57% from figures recorded in October 2025, highlighting a critical shift in market dynamics.
The laws of supply and demand suggest that reduced availability should typically lead to price elevation. For instance, transactions moving XRP from exchanges into private wallets result in decreased availability for immediate trading. This scenario constrains supply, potentially creating upward pressure on the price. Some analysts advocate that the significant drop in exchange balances could trigger a supply shock that might lead to a bullish rebound in XRP’s price.
Despite these favorable supply metrics, XRP’s price behavior has been erratic, with current valuations still languishing around $1.8. This disconnect indicates that simply having a tighter supply may not suffice to ignite a meaningful price recovery.
Understanding the Price Stagnation Below $2
XRP experienced a significant surge that momentarily pushed its price above $3 in early 2025, but this advance was fleeting. Persistent selling pressure, negative market sentiment, and general volatility have reversed much of these gains, leaving the cryptocurrency nearly 50% below its peaks.
The inability of XRP to clear the critical $2 resistance level has been evident through repeated failed breakout attempts, suggesting a lack of strong buyer interest. An ongoing wave of selling pressure has heavily impacted prices, as rapid sell-offs continue to burden the market and hinder any recovery efforts.
On-chain data further illustrates XRP’s struggles. Alarmingly, over half of the circulating supply is currently operating at a loss, amplifying the risk of panic selling and contributing to the continued bearish sentiment.
Outside influences are further complicating XRP’s position. The broader cryptocurrency market is facing downward motion, with major players like Bitcoin, Ethereum, and others also experiencing declines. This trend showcases a broader market contraction, which has added to XRP’s difficulties in achieving price gains.
The combination of negative market conditions and faltering investor confidence has plunged XRP into ongoing price challenges. Analysts remain cautiously optimistic, predicting potential future rebounds; however, as of now, XRP continues its decline, having closed 2025 in a downtrend and extending these challenges into 2026 without any signs of immediate recovery.
