Ripple moved 250M XRP into an unknown wallet, and this action changed the short-term liquidity landscape immediately.
Traders now examine this shift closely because such a large movement often influences circulating supply.
Additionally, the transfer highlights deeper liquidity implications since fewer tokens sit within immediate sell zones. This shift forces traders to evaluate how it blends with tightening reserves across exchanges.
However, uncertainty still surrounds the intention behind the movement, which increases speculation around strategic positioning.
The transfer now shapes the broader setup for XRP price, especially since reduced supply often sharpens market reactions.
Can XRP confirm a double bottom at $1.99?
XRP created a potential double-bottom around $1.99, and this region now anchors the developing structure. Traders study this zone closely because both lows show strong rejection.
Besides, the chart suggests a possible brief dip toward $1.90, yet the structure still holds strength. Price now approaches the neckline at $2.2443, which remains the key pivot for a stronger advance.
A clean breakout opens space toward $2.5021, which aligns with the projected path. However, confirmation requires strong follow-through and consistent buy activity.
The pattern now gains credibility because several on-chain signals support the structure. Therefore, XRP price approaches a crucial moment.
Source: TradingView
Buyer aggression strengthens as taker CVD climbs
Taker Buy CVD shows strong upward movement, and this signal highlights aggressive buyer behavior. Traders lift offers consistently, and this pressure supports the developing reversal pattern.
Furthermore, buyers show confidence around support, which often strengthens early trend shifts. The CVD curve now rises firmly, and this action aligns perfectly with the double-bottom structure.
However, sellers still attempt to stall momentum around minor resistance, yet buyers continue to absorb pressure. This dynamic grows stronger as liquidity tightens following Ripple’s large transfer.
Traders now rely on this signal as evidence of meaningful commitment. Therefore, XRP price gains supportive flow from both liquidity and aggressive spot demand.
Source: CryptoQuant
XRP shrinking exchange reserves support the bullish structure
At press time, Exchange Reserves fell 2.51%, tightening sell-side liquidity across major trading venues. This is key, as reduced reserves often create conditions for sharper upside reactions.
Moreover, the drop aligns with Ripple’s large transfer, which strengthens the overall supply-withdrawal narrative.
This reduction means fewer tokens sit available for instant selling, and that shift supports early reversal structures.
However, reduced supply also increases volatility risk if leveraged traders become overly aggressive.
The market now blends these signals into a clearer structural picture, and many traders see growing potential for upside continuation. Therefore, the reserve trend adds crucial support to the evolving XRP price setup.
Source: CryptoQuant
XRP Funding Rates surge as bullish leverage intensifies
Funding Rates jumped more than 460%, at the time of writing, and this rise shows strong bullish conviction among long-side traders.
Market participants now anticipate a breakout above the neckline, and this belief drives aggressive positioning. Moreover, increasing funding reflects expanding confidence in the double-bottom formation.
However, high funding also raises risk because liquidation levels tighten during sharp moves. Traders now manage this dynamic carefully while tracking buy-side strength in spot markets.
Strong CVD and shrinking reserves now merge with this surge in leverage, creating a powerful cluster of signals. Therefore, the derivatives market now adds momentum to the broader XRP price narrative.
Source: CryptoQuant
Does this structure support a breakout?
The combination of Ripple’s massive transfer, shrinking reserves, rising CVD strength, and the double-bottom pattern creates a cohesive bullish framework.
If buyers reclaim $2.2443 decisively, XRP price gains a clear path toward $2.50. However, this outcome requires firm defense of $1.99 and healthy momentum from spot demand. The structure now leans bullish with strong supporting metrics.
Final Thoughts
- Ripple’s massive transfer, shrinking reserves, and rising buyer aggression combine to strengthen XRP’s bullish setup.
- A decisive reclaim of $2.2443 could unlock a path toward $2.50, provided $1.99 holds firm.
Source: https://ambcrypto.com/ripple-moves-250m-xrp-can-supply-crunch-trigger-a-2-50-move/
