XRP faced sharp volatility on Monday as rising exchange inflows renewed selloff fears. The token briefly jumped to $1.91 before sliding back to $1.86 within hours. On-chain data now shows mounting distribution pressure, especially from Binance and major South Korean exchanges, keeping market sentiment fragile.
Exchange Inflows Signal Renewed Distribution Pressure
On-chain data from CryptoQuant shows a sharp rise in XRP exchange inflows since mid-December. The surge aligns with the broader market correction that followed XRP’s recent peak. Notably, inflow levels now mirror those seen during the October market crash, a period marked by aggressive selling.
Binance recorded the largest spike. Daily XRP deposits ranged between 55 million and 116 million tokens. Such activity often signals intent to sell rather than hold. Historically, similar inflow spikes coincided with whale-driven distribution phases. This pattern adds pressure during already weak market conditions.
Meanwhile, South Korean exchanges amplified the trend. Upbit and Bithumb both saw heavy XRP deposits. These platforms often influence short-term price action due to high retail participation. In previous cycles, strong inflows into Korean exchanges preceded sharp pullbacks. This time, the setup looks similar.
Price Weakens as Bearish Signals Stack Up
Despite falling exchange reserves, rising inflows suggest a behavioral shift among holders. Investors appear more willing to move XRP to exchanges. At the same time, spot XRP ETF inflows failed to lift prices. Total net ETF inflows reached $1.14 billion, while total assets under management hit $1.25 billion. Still, price momentum stayed weak.
XRP price traded lower after erasing early gains. The token was last hovering near $1.87. Intraday price ranged between $1.85 and $1.91. Trading volume jumped 70% in 24 hours, reflecting heightened activity and uncertainty.
Technical analysts also raised red flags. Veteran trader Peter Brandt pointed to a bearish double-top pattern on the weekly chart. He warned of a possible drop to $1. Other analysts echoed the view. Ali Martinez flagged $1.80 as a key level. A break below could accelerate losses.
Derivatives data reinforced the bearish outlook. CoinGlass showed a sharp drop in futures open interest. Total XRP futures OI fell nearly 3% to $3.44 billion in four hours. CME and Binance OI slid over 1.2% and 2.1%, respectively. This move suggests that traders are cutting their exposure and favoring downside risk.
