Ripple (XRP) spent much of the end of May under pressure as traders reacted to broader market weakness and declining risk appetite. As sentiment deteriorated, FX activity surged, revealing how participants positioned themselves in the face of the recent sell-off.
On May 28, exchange flows surged by 22.8 million XRP, marking the largest transfer to exchanges this year.
Such moves typically signal increasing selling pressure as holders prepare to exit their positions. However, the market reacted differently.
Rather than falling, XRP stabilized near a 15-week low, suggesting that buyers absorbed much of the incoming supply.
This change became more evident later. Between May 29 and 30, approximately 25.24 million XRP left exchanges, surpassing the previous inflow and indicating further accumulation below the surface.
The drop in supply strengthens the fundamental arguments of XRP
The reversal of XRP’s exchange flow already suggested that stronger hands were absorbing the supply of weaker participants. Beyond these withdrawals, broader on-chain metrics now show that the change is becoming more visible.
The foreign exchange supply continues its downward trend, with the foreign exchange supply ratio remaining close to 0.03. This drop reflects investors moving XRP into custody, reducing the coins available for immediate sale.
The valuation situation also appears healthier.
In fact, the network value-to-transactions (NVT) ratio, which compares market value to transaction activity, has moderated toward 396 from earlier extremes. This suggests that network use increasingly supports valuation.
Meanwhile, XRP’s momentum remains neutral, with the Awesome Oscillator (OA) near -0.06. However, falling supply and improving network efficiency are gradually reducing the downward pressure.
As sales liquidity tightens, buyers may require less capital to influence price direction, strengthening conditions for a lasting market bottom.
XRP’s narrow range reflects a market in transition
The improving on-chain structure of XRP is now starting to influence market behavior. After weeks of heavy distribution, the price has stabilized in a tight range of $1.33 to $1.35, signaling that selling pressure is gradually losing momentum.
This stabilization is occurring because buyers continue to absorb supply near the $1.30 support zone. Each new test attracted demand, preventing a deeper breakdown despite broader market uncertainty.
Meanwhile, resistance near $1.40 continues to limit further upside. This reflects a market still seeking conviction after months of volatility and shifting sentiment.
The RSI has returned to 54.5, showing that momentum is no longer firmly bearish. This behavior involves participants moving from hard selling to hoarding.
If support continues to hold, compressed volatility could potentially fuel a stronger directional move as marginalized capital re-engages.
Final summary
- Ripple (XRP) is showing early signals of a bottom as accumulation builds and the supply held on exchanges continues to decline.
- XRP remains in consolidation, although tightening supply and stable demand are improving conditions for recovery.
