XRP Exchange Supply Dries Up, Will $500 Million Whale Buying Lead a Bull Run?

▲ XRP (XRP, ETF/ChatGPT Generated Image) ©

As giant whales accumulate a staggering $500 million worth of XRP and virtual asset exchange deposits plummet to a 7-year low, warning signs are flashing that an explosive supply squeeze is imminent for the XRP (Ripple) ecosystem, which is attracting institutional funds.

According to investment media TradingNews on April 21 (local time), Bitwise's spot exchange-traded fund XRPI is trading at $7.96, and REX-Osprey's XRPR is trading at $11.61, driving institutional demand. The XRP spot ETF market has recorded net inflows for 7 consecutive days, surpassing a total net asset value of $1.076 billion. Notably, in mid-April alone, it absorbed $55.39 million, the largest amount since 2026, demonstrating explosive growth.

In conjunction with this institutional buying, whale accumulation movements are also fierce. According to on-chain data from Santiment and others, large investors have accumulated an average of 11 million tokens daily over recent weeks, investing a total of $500 million. As large volumes move from Korean exchanges like Upbit and Bithumb to cold storage, exchange holdings have plummeted by 57% since October 2025, reaching a 7-year low, signaling a structural supply shortage that could drive price increases.

Behind the relentless inflow of funds lies resolved regulatory uncertainty. In March, the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission officially classified XRP as a digital commodity. Subsequently, the CLARITY Act, a U.S. crypto market structure bill that would codify this into federal law, is awaiting Senate passage. Meanwhile, the liquidation of XRPK, a low-profit 2x leveraged product, in May is interpreted as a positive sign that speculative capital is receding, and healthy, spot-focused capital is leading the market.

The current XRP price, pausing at the $1.42 level, is in a compression phase before a massive breakout. Technically, the Supertrend indicator on the daily chart has flashed a buy signal for the first time since January 2026. If the key resistance level of $1.55 is decisively broken, it opens the path for a vertical ascent to $1.80 and then $1.92. Conversely, if the $1.30 support level breaks, the short-term trend could reverse, pushing the price down to $1.12, requiring thorough risk management.

Spot fund prices are also expected to see a strong rally with the breakout of the underlying asset's price. The media predicts that if the XRP price breaks through resistance, XRPI could rise to $9.50 and XRPR to $14. However, macroeconomic variables such as the scheduled expiration of the ceasefire with Iran this week and the U.S. Federal Reserve's monetary policy meeting could stimulate short-term market volatility. Therefore, investors should monitor macroeconomic indicators and approach with a phased buying strategy.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*