XRP Stagnates at $1.40 as Trading Activity Dries Up

Ripple recently completed its monthly escrow release, injecting 1 billion XRP into the ecosystem. The company quickly locked 700 million of those coins back into new escrows, leaving 300 million units available. While these coins remain within Ripple linked wallets rather than hitting exchanges, the market lacks the buying power to absorb them. Currently, buy orders near the $1.40 price point total roughly $108 million, which is far less than the $422 million value of the released supply.

Market data shows that XRP holders are choosing to wait. The share of supply held for one to two years has increased to 18.2 percent, suggesting that long term investors are not selling despite recent price fluctuations. Meanwhile, trading volume has consistently declined since the surge on August 22, dropping to approximately 27.6 million XRP. This lack of participation makes it difficult for the asset to gain momentum.

Technically, XRP remains in a precarious position. While the price sits above the 20 day and 200 day moving averages, a potential golden cross is currently weak due to the falling volume. Large traders maintain a bullish outlook in terms of count, but the actual dollar value behind their bets is more cautious. Investors should watch the $1.47 resistance level for a potential breakout or the $1.30 mark, where a daily close could invalidate the current recovery trend.