XRP bounces, but $2 remains the hurdle as exchange supply hits 8-year low

Core Insights - XRP's price increased to $1.87 as the supply held on exchanges dropped to its lowest level since 2018, indicating a tightening float narrative despite the price being below the $1.88–$2.00 resistance band [1][2] Supply Dynamics - The supply of XRP on exchanges has decreased to approximately 1.6 billion XRP, a decline of about 57% since October, suggesting a shift towards long-term storage rather than immediate selling [2] - This reduction in exchange inventory is significant as it can enhance price movements when demand increases, although it does not ensure upward price movement if sellers appear at established technical levels [4] Market Positioning - Institutions are increasingly utilizing structured and regulated platforms for exposure, while spot markets remain volatile, resulting in a supportive long-term demand for XRP but fragile short-term momentum [3] Technical Analysis - XRP experienced a 1.7% increase from $1.84 to $1.87, maintaining a relatively narrow trading range of $0.05 with increased volume during the upward movement, indicating robust participation [5][8] - The price has faced resistance near the $1.88 level, which aligns with a broader resistance zone ahead of the psychological $2.00 mark, where previous attempts to reclaim $2 have been unsuccessful [6] - Momentum indicators show mixed signals, with some oscillators indicating bullish divergence, but the market requires follow-through above resistance to confirm this [7] Price Action Summary - XRP's price rose from $1.84 to $1.87, establishing a series of higher lows, with volume peaking at around 32 million, approximately 50% above average [8] - The price stalled near the $1.88 resistance, maintaining the broader range of $1.77–$2.00, with late-session action consolidating around $1.873, indicating an inflection point rather than a breakout [8]