- XRP’s ESS drop signals potential upside, but volume is missing.
- Declining ESS hints at a price surge but lacks volume confirmation.
- XRP’s market movement is uncertain without volume backing the rally.
Crypto expert Xaif Crypto has brought attention to a significant decline in XRP’s Exchange Supply Share (ESS), a key indicator of the cryptocurrency’s market behavior. In a recent post, Xaif noted that this decline in ESS, historically a precursor to price rallies, might point to a potential upside for XRP.
However, while past trends show a link between low ESS and price surges, there’s an important caveat—current market conditions lack the volume confirmation necessary to validate a sustained rally. Without it, the bounce in XRP’s price could merely be a short-term relief, not a lasting trend.
XRP’s ESS has recently hit troubling lows, which traditionally signals a potential price increase. This pattern was evident earlier in 2025, when a decline in ESS was followed by a notable price breakout after a 2 to 4 week lag.
Despite the favorable technical setup, Xaif Crypto cautions against jumping to conclusions. While a lower ESS generally leads to upward pressure on price, the absence of sufficient volume raises doubts about the sustainability of such a rally.
Volume Confirmation is Key
Volume remains the key factor in determining whether the price movement can hold over time. Although the technical indicators suggest a possible price rise, the absence of significant trading volume creates uncertainty.
A price increase without the backing of strong volume often signals weak momentum, making it difficult for the rally to last. If XRP’s price begins to rise without substantial buying activity, it may lack the support necessary to drive long-term gains.
Also Read: XRP to Break Through the Selling Wall Soon? Here’s What’s Happening
Source: X
As Xaif Crypto highlights, traders and investors need to keep an eye on volume. While the dip in ESS is often considered a positive sign for price increases, it is not a guarantee of success. The market needs solid volume confirmation to validate the price movement. Without that, any increase could quickly fade, making it important for investors to stay cautious and wait for further confirmation before committing to any trades.
What This Means for XRP’s Price Trajectory
The drop in ESS is a significant signal, as lower supply on exchanges typically leads to upward pressure on the asset’s price. However, without volume confirmation, this time may be different. As Xaif Crypto points out, even the most promising technical setups can fail without supporting factors like volume. Therefore, the current technical indicators might only represent a short-term opportunity, not the beginning of a sustained price rise for XRP.
In conclusion, while XRP’s ESS is presenting a potentially bullish scenario, the market remains uncertain. As Xaif Crypto underscores, the lack of volume confirmation could mean the rally is fragile and unsustainable. Investors should remain cautious and closely monitor the market for signs of volume before assuming that a major trend is forming.
Also Read: Analyst: ‘Don’t Be Shocked When XRP Hits $15 This Year’ – Here’s Why
