22M XRP Flees Exchanges: Short-Term Supply Squeeze Incoming?

Another massive chunk of XRP just vanished from trading platforms. The 22 million token exodus sparks immediate questions about available supply and where all that liquidity is headed.

The Vanishing Act

Exchange wallets are bleeding XRP. When tokens leave these public ledgers, they typically move into private custody—cold wallets, institutional vaults, or staking protocols. That's a direct hit to the immediate, tradeable supply. It's a classic bullish signal: accumulation, not distribution.

Reading the Tea Leaves

This isn't random noise. Moves of this scale suggest coordinated action. Are whales positioning ahead of a catalyst? Is it long-term holding, or just a reshuffle between custodians? The market's left guessing, but the mechanics are clear: fewer tokens on exchanges mean less sell-side pressure and a tighter market. Basic supply and demand—even Wall Street's quants can grasp that one, between their latte breaks.

The Ripple Effect

A supply squeeze can amplify price moves. With less XRP readily available to sell, any surge in buying demand meets thinner order books. That can lead to sharper, more volatile price spikes. It turns a gentle incline into a potential cliff face.

So, watch the flows. When liquidity exits stage left, the market's next act often gets a lot more interesting.

TLDR

• XRP exchanges recorded a net outflow of 22 million tokens in the first week of January.
• Upbit and Bithumb in South Korea saw the highest XRP withdrawals during the period.
• Binance and Crypto.com reported inflows of XRP, balancing the overall exchange activity.
• Exchange wallet balances declined by only 0.14% since December 31.
• Analysts suggest the movement reflects regional shifts rather than a true supply shock.

Fresh exchange data has raised concerns around XRP supply as major platforms recorded a net outflow of 22 million XRP, yet analysts say it’s a regional and temporary redistribution rather than a market-wide supply shock, even as short-term trading pressure continues NEAR key price levels and resistance zones.

As promised, manual check of XRP balance on major exchanges, all wallets containing 1M+ XRP.

Since December 31st, in a week:

Total XRP on exchanges tracked has decreased by almost 22M (0.14% of total). Most notable drops in Korean exchanges Upbit and Bithumb as opposed to an… pic.twitter.com/vgEnJorjSi

— Leonidas (@LeoHadjiloizou) January 7, 2026

South Korean Exchanges Record High XRP Outflows

XRP outflows from South Korean platforms stood out during the first week of January, drawing increased market attention. Upbit recorded nearly 36 million XRP outflows, while Bithumb saw about 8 million XRP exit during the same period.

This movement suggests some South Korean traders are reducing positions or taking short-term profits after recent price activity. Though the total combined outflow is 44 million XRP, overall exchange balance data tells a different story.

According to Leonidas Hadjiloizou, XRP exchange balances fell by only 0.14% since December 31. He tracked wallets holding at least 1 million XRP to assess shifts in exchange-held supply across major platforms.

Global Exchanges Show Redistribution, Not a Shock

Outside South Korea, several exchanges recorded inflows, showing redistribution instead of overall decline in XRP supply. Binance logged nearly 28 million XRP in inflows, while Crypto.com gained approximately 9 million XRP during the same period.

These flows helped offset Korean outflows and pointed to a regional rather than a global movement of XRP. Hadjiloizou explained the overall balance drop was minor in percentage terms compared to XRP’s trading activity.

“Although 22 million XRP left exchanges, it accounts for just 0.14% of total balances,” he clarified on social media. This context weakens the argument for a looming supply squeeze across the broader market.

Crypto legal analyst Bill Morgan said that exchange balances have started to rise again, easing short-term concerns. His observation supports the view that XRP remains available and liquid across global platforms.

More XRP on exchanges
That will give some relief to the supply shock https://t.co/cOtjIVg1ME

— bill morgan (@Belisarius2020) January 8, 2026

Trading Volume, Price Action, and Market Sentiment

Despite the exchange movements, xrp price dropped by over 7% within 24 hours after failing at resistance near $2.40. The token met strong selling pressure around the $2.38–$2.40 range, leading to a retreat in bullish momentum.

That rejection stalled XRP’s upward movement and shifted short-term sentiment. Daily XRP trading volume ranged from $2–$4 billion, equating to 1–2 billion XRP traded daily at current prices.

Therefore, the 22 million XRP outflow equals only about 1% of a single day’s volume. Ali Martinez highlighted that XRP showed signs of a rebound following the drop, citing a TD Sequential buy signal.

TD buy signal playing out as $XRP bounces once more. pic.twitter.com/jBVFF5DU0d

— Ali Charts (@alicharts) January 8, 2026

He noted that downside pressure may be easing, leaving room for a possible short-term bounce. At present, XRP maintains strong daily liquidity, and exchange availability remains stable across major global platforms.