- Coinbase slashes XRP holdings, sparking speculation on institutional moves.
- Millions in XRP exit cold wallets, raising questions about custody.
- XRP chart signals resistance at $3.20 with key support below.
Coinbase has recorded a dramatic drop in its XRP reserves, with holdings falling by nearly 90% in just three months. According to XRPWallets, the exchange’s cold wallet balance reduced in size by nearly 90 million XRP between mid-September and early summer, with the ratio of cold wallet balance holding approximately 970 million XRP at the start of the summer.
At the peak, Coinbase controlled 52 cold wallets, with ten holding 26.8 million XRP each and the rest containing a combined 16.8 million. This transformed the exchange into one of the biggest apparent custodians of XRP in the market.
New figures indicate that there are only six wallets that are still in operation, with each holding approximately 16.5 million XRP. Such a steep fall is an 89.79% drop that was experienced in June, and it dropped Coinbase holdings to its lowest point in years.
During the summer, there were regular transfers between Coinbase and Wallets that could not be identified. One of the latest observed 16.5 million XRP, priced at 51.4M, entered the exchange last weekend.
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Speculation Over the Exit of XRP
The sudden outflow has triggered speculation about where the missing XRP is going. According to some market observers, institutions like BlackRock might buy tokens via Coinbase on behalf of clients. Nonetheless, this has not yet been verified since blockchain records merely indicate that coins are leaving cold storage.
The rest think that the assets are being transferred to personal vaults or other custody vessels. The magnitude of the decline indicates tremendous changes in the way big holders are handling their XRP exposure.
Despite Coinbase’s decline in holdings, XRP is still the third-largest cryptocurrency in market capitalization. It is now pegged at an approximate $183 billion, right behind Bitcoin and Ethereum.
Technical Outlook From the XRP Chart
The daily price chart of XRP against Tether shows a breakout above a descending trendline. The move briefly lifted the token above $3.20 before sellers pushed back.
According to major moving averages, key support levels are at $2.81 and $2.50. A conviction above $3.00 might boost the bullish momentum, whereas a decline below that point may welcome fresh pressure.
Source: Tradingview
The reserves of the XRP coins that Coinbase previously held have been diminished to a minimal percentage of the previous figure, leaving people wondering where the coins will go.
As millions of exchange custody fly, the market is eagerly awaiting to know the impact of such activities on the liquidity and trading conditions.
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