- XRP under pressure as foreign reserves rise:

The number of XRP tokens traded on exchanges increased to 2.7 billion tokens by Thursday, up from 2.67 billion tokens on Monday. Looking back, the circulating XRP balance was 2.64 billion tokens on December 29, indicating that holders are transferring these tokens with the intention of selling them when the price rises.

According to CryptoQuant, increasing exchange reserves point to greater selling pressure, which could pose an increased risk to price recovery.

XRP exchange reserve on Binance platform | Source: CryptoQuant

Meanwhile, demand for XRP derivatives remained weak, declining to $3.98 billion on Friday from $4.08 billion the previous day. Open trading volume peaked at $4.55 billion on January 8, two days after XRP's price surged to $2.42. Further declines in open trading volume could lead to falling prices.

Open interest in XRP futures contracts | Source: CoinGlass

Despite a three-day price correction, institutional sentiment remains relatively positive, as evidenced by steady inflows into spot XRP exchange-traded funds.

US-listed XRP ETFs recorded inbound cash flows of approximately $17 million on Thursday, up from about $11 million on Wednesday, according to SoSoValue data. Total inflows reached $1.27 billion, with net assets of $1.51 billion, indicating investor confidence remains stable.

XRP ETF inflows.
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