XRP is currently showing signs of strengthening as supply on exchanges is dwindling while demand from institutions continues to increase through ETF inflows.
At the time of writing, XRP is at $1.3571, up 0.62% since it opened early Monday in Asian trading.
This development raises questions about whether XRP can break the key resistance level at $1.50 in the near term.
Market data shows that XRP holdings on Binance have fallen to around 2.70 billion XRP, one of the lowest levels in almost three months.
Previously, between July and October 2025, XRP holdings on exchanges were closer to 3 billion XRP when the price was trading above $3.0.
The decline in holdings on exchanges typically reflects investors moving their holdings to private wallets for long-term storage, thus reducing immediate selling pressure in the market.
At the same time, demand for XRP is also receiving strong support from ETF inflows.
The XRP ETF has seen six consecutive days of inflows without any outflows, with cumulative inflows reaching around $1.41 billion.
The value of the ETF’s assets remains above $1.13 billion, indicating that institutional interest in XRP remains stable despite the slowdown in the crypto market.
This situation has helped strengthen spot demand as buyers become more aggressive in absorbing the available supply in the market.
With the amount of XRP on exchanges decreasing, the pressure on supply is also increasing and could open up room for a price increase if the buying momentum continues to increase.
However, XRP still faces a major challenge to break through the resistance zone around $1.50 to $1.52.
Despite the tightening supply, the price has still failed to maintain momentum above that level due to selling pressure from large holders in the resistance area.
If ETF inflows continue to increase and buyers manage to absorb the selling pressure more aggressively, XRP has the potential to create a new breakout.
However, without strong buying volume, the reduction in supply alone may not be enough to bring XRP higher in the near future.
