XRP Supply on Exchanges Crash to 8-Year Lows, But Why Is the Price Still Below $2?
XRP is reportedly showing signs of to strengthen the supplyand exchange balances fell to levels not seen in years. Despite this change, the price of the cryptocurrency remains stuck below $2, highlighting a rare disconnect between dwindling supply, sluggish demand, and weak price performance.
XRP Exchange Balance Crashes To New Lows
The supply of XRP on the crypto exchange fell to an eight-year low, however the token continues to trade below $2. According to Glassnode data, the supply of XRP held in exchange has fallen for 1.6 million tokens. This marks a drop of nearly 57% from the 3.76 billion XRP recorded on October 8, 2025, which represents the lowest level since 2018.
From a basic economic perspective, low supply combined with increased demand tends to cause commodity prices to rise. For example, when coins are moved from crypto exchanges to private wallets, they are less available for immediate sale, which can limit supply and the ability to support price appreciation. Analysts like X Finance Bull too see decline in exchange rates as a bullish signal that can cause a provide shock and may cause a meeting.
However, despite the exchange rates reaching multi-year lows this cycle, the price of XRP has struggled to maintain higher momentum and has continued to hover around $1.8. This choppy action suggests that reduced supply alone has not been enough to support the recovery or ease ongoing selling pressure.
Why the Price Stays Stuck Below $2
Although XRP saw a sharp rally that briefly pushed its price above $3 in early 2025, that move was short-lived. Regular distribution, bad investor sentimentand general market volatility wiped out most of the gains, pushing the cryptocurrency nearly 50% below its previous high.
XRP continues to struggle rising above $2 because its repeated exit attempts were rejected, keeping it below key resistance levels. This behavior indicates weak demand and low consumer participation. Persistent sales pressure and has a great weight of value. In recent months, accelerated sales have exacerbated the market’s decline, preventing any meaningful or sustained reversal.
On-chain metrics also provide more context for ongoing weaknesses. Notably, part of the XRP supply is profitable at the moment he also refused. More than half of the circulating supply is now underwater, increasing the risk of panic selling and reinforcing further declines.
Broader market conditions also seem to be adding to XRP’s price volatility. Major cryptocurrencies, such as Bitcoin, Ethereum, Dogecoin, and Solana walking on the groundindicating a broader market decline that rebalanced the price.
The combination of these market factors and the decrease in investor sentiment has significantly affected the price of XRP, driving it to to go down. While market analysts remain optimistic about cryptocurrency which may have a strong price recoveryXRP remains in the red, closing the 2025 low and extending its decline into 2026 without a quick rebound in sight.
The featured image was created with Dall.E, a chart from Tradingview.com
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