XRP Climbs 3.5% but Fails to Clear $1.38 Despite Supply Crunch
What to Know
- XRP is up 3.5% but still failing to break the key $1.38 resistance level
- Over 7 billion XRP left exchanges, tightening supply but not boosting price yet
- A breakout above $1.38 or drop below $1.31 will likely decide the next move
XRP is showing strength on the surface, but underneath, the market is sending mixed signals. The token has climbed around 3.5% in the last 24 hours, hovering near the $1.34–$1.35 range. However, despite positive momentum and a clear reduction in available supply, XRP is still struggling to break above the key $1.38 resistance level. This disconnect is now becoming the main talking point among traders.
Market Rally Lifts XRP
The recent price increase in XRP is not happening in isolation. The broader crypto market has also moved up, with total market capitalization rising and Bitcoin leading the rally. This comes after easing geopolitical tensions, particularly in the Middle East, which helped improve overall risk sentiment. According to CryptoNewsZ, this kind of movement is often called “beta-driven.” At the moment, XRP is trading slightly above its short-term support near $1.35, which is keeping the bullish structure intact. Moreover, along with this momentum, XRP Ledger’s on-chain activity has also increased by 410.7% recently. This increase pushed the TPS beyond 120 as blocks processed 600-700 transactions each.
At the same time, a major supply shift is happening in the background. Large amounts of XRP are leaving exchanges, which usually means fewer tokens are available for selling. In February alone, around 7 billion XRP moved off exchanges, signaling a clear supply squeeze. On top of that, indicators tracking exchange availability have hit their highest levels since 2024.
Normally, when supply goes down like this, prices tend to move up faster because there is less selling pressure. But that’s not what’s happening right now. Instead, XRP is stuck in a tight range between $1.31 and $1.35. Buyers are stepping in to defend dips, but sellers are still active near resistance levels, preventing a breakout. This creates a situation where pressure is building but not yet releasing.
Price Action Shows Compression
Looking at recent price behavior, XRP has repeatedly tested the $1.33–$1.34 zone but failed to move higher. Attempts to break out have been rejected, with resistance forming just above current levels. At the same time, each dip toward $1.31 is being bought up, creating higher lows. This usually signals that buyers are gaining strength slowly.
Another interesting detail is volume. Trading activity has increased, but the price hasn’t expanded much. This suggests that traders are positioning themselves, but they are not fully confident yet. Such setups often don’t last long. When price stays compressed like this, it usually leads to a sharper move, either up or down.
Ecosystem Updates
In a fresh update, Ripple announced that its stablecoin RLUSD is now live on Coinone, one of South Korea’s largest regulated crypto exchanges. This move allows Korean traders to directly access RLUSD using their local currency, the Korean Won (KRW).
Ripple’s partnership with Convera aims to improve cross-border payments using blockchain technology. While this doesn’t directly push XRP’s price in the short term, it strengthens long-term confidence. On-chain activity on the XRP Ledger has also surged significantly, showing higher network usage. Transaction speeds and activity levels have increased, which is generally seen as a positive sign. There are also early steps toward quantum-resistant security, with XRP Ledger testing new cryptographic methods. While still experimental, it adds to the long-term narrative.
What Comes Next
In the short term, all eyes are on two key levels. The first is resistance at $1.38. If XRP manages to break and hold above this zone, it could quickly move toward $1.42. The second is support at $1.31. If this level breaks, XRP could fall back into the $1.25–$1.30 range.
Another important factor to watch is the upcoming CLARITY Act committee deadline on April 13, which could act as a major trigger for the market. For now, XRP remains in a “wait-and-watch” phase. Supply is tightening, demand is slowly building but the breakout hasn’t happened yet. And when it does, the move could be sharp.
Also Read: Blockchain Futurist Conference Returns to Toronto for Its Ninth Year
