XRP Faces Liquidity Squeeze as 6.5B Tokens Exit Exchanges

• XRP sees 6.5B tokens exit exchanges, tightening liquidity and price dynamics.
• Closing above $2.60 is bullish, but $3.40 signals “super bullish” conditions.
• XRP ETF purchases surge, with $22.68M in holdings, signaling institutional interest.

XRPs supply on exchanges has recently seen a significant drop, with over 6.5 billion XRP leaving exchanges in a single day. This exodus accounts for nearly 1 out of every 9 XRP tokens in circulation, signalling one of the largest coordinated exits in cryptocurrency history.

XRP Exchange Ranking Table (2025-11-28) | Source: X

According to Glassnode, this withdrawal is contributing to a sharp tightening of liquidity across exchanges, which could increase upward pressure on the price of XRP if demand remains high.

Over the past weeks, more than 180 million XRP have left exchanges, further compounding the liquidity squeeze. This decrease in available supply, coupled with the ongoing price decline, suggests that XRP is entering a phase of increased volatility.

XRP Balance on Exchange (Total) – All Exchanges

The impact on price dynamics will likely be significant, as reduced liquidity often amplifies price fluctuations, particularly in times of high demand. As of November 29, 2025, XRP is trading at around $2.05, reflecting the markets ongoing sensitivity to shifts in supply and demand.

Analysts Highlight Key Price Levels Amid Institutional Demand

XRPs price action is currently at a pivotal point, with key technical levels under scrutiny. EGRAG CRYPTO outlined that XRP must close above $2.60 to maintain a bullish outlook.

XRP Monthly Chart | Source: X

A move above $3.40, the Fib 0.888 level, would signal a super bullish market. However, a fall below the 21 EMA would point to bearish conditions.

Moreover, Steph is Crypto compared the current setup to the 2017 liquidation wick, noting that a similar pattern could lead to significant gains in the coming months.

XRP 3D Chart 2017 vs 2025 | Source: X

On the institutional side, XRP has seen increased interest, with ETF clients purchasing $22.68 million worth of the token, raising total ETF-held assets to $687.81 million. The launch of the 5th spot XRP ETF by 21Shares on December 1, 2025 adds another layer of institutional validation.

This growing institutional presence, combined with tightening liquidity, suggests a bullish outlook if XRP can maintain its price above critical technical levels.