XRP seems to be entering a new phase as the withdrawals on exchanges exceed the deposits. Despite the supply on exchanges dropping, XRP is still consolidating, but it is forming the bullish falling wedge.
Coinbase sees 10,900 more withdrawals compared to deposits
XRP coins available on exchanges are starting to drop as the withdrawals from exchanges have dwindled compared to the deposits. According to analyst Amr Taha, Coinbase exchange recorded the movement as its seven-day net depositing/withdrawing wallets metric fell to -10,900 on August 4. This means that the withdrawing wallets outnumbered depositing wallets by 10,900 during the period.
“The reading was about 3.4 times deeper than Coinbase’s previous low of -3,200, recorded in June 2025. This points to a sharp increase in withdrawal activity.
Binance recorded -2,550 wallets on August 4. It last reached a lower level in June 2025, when the metric fell to -4,380. Crypto.com posted -2,290, compared with its June 2025 low of -4,470.”
A decline in XRP held on exchanges is generally viewed as a bullish signal because it reduces the amount of tokens readily available for sale. When investors withdraw XRP from exchanges to private wallets or cold storage, it often suggests they are accumulating the asset with the intention of holding it for the long term rather than selling it immediately.
XRP consolidates inside falling wedge after supply shrinks on exchanges
This reduction in exchange supply can ease selling pressure, and if demand for XRP remains strong or increases, buyers may have to pay higher prices to acquire the available tokens. As a result, lower exchange reserves can contribute to upward price momentum, although the trend is most reliable when supported by strong trading volume, growing network activity, and positive market sentiment.
As shown in the chart above, XRP has not responded to the low supply in the market. Although the price has not responded, XRP is still trading inside a bullish falling wedge pattern. Once XRP completes this pattern and breaks out, there is a high chance that it could surge drastically.
