XRP’s price movement is at a crucial crossroads as recent on-chain metrics reveal a significant $70.50 million worth of XRP outflows from exchanges, amid ongoing bearish sentiment in the cryptocurrency market. The token’s price has seen a decline of 3.60% in the past 24 hours, trading near $2.90 at the time of writing. However, XRP’s price outlook is being closely monitored as Ripple Labs takes action to stabilize the asset.
Ripple Locks 700 Million XRP into Escrow
On February 2, Whale Alert, a blockchain transaction tracker, reported that Ripple Labs moved 700 million XRP tokens into escrow. This move, locking the tokens for a temporary period, serves to prevent these funds from circulating within the market. Historically, when Ripple locks XRP in escrow, the market tends to experience relief and gains momentum, helping to stabilize price action in times of market uncertainty.
🔒 🔒 🔒 🔒 🔒 🔒 🔒 🔒 🔒 🔒 430,000,000 #XRP (1,268,785,245 USD) locked in escrow at #Ripplehttps://t.co/1ea4xRKEBm
— Whale Alert (@whale_alert) February 2, 2025
While this transaction is aimed at reducing selling pressure, the broader market is still under bearish sentiment. XRP, like other cryptocurrencies, has been facing a price decline due to market-wide adjustments. However, Ripple’s strategic use of escrow could provide some short-term relief, as it ensures that the locked tokens remain out of circulation.
On-Chain Metrics and Accumulation
Despite the bearish market trend, XRP has witnessed an increase in trading volume, which surged by 65%. Long-term holders appear to be taking advantage of the price drop, accumulating XRP as indicated by recent on-chain data from Coinglass. The $70.50 million outflow from exchanges in the past 48 hours points to a growing interest in holding XRP at these levels, signaling a potential accumulation phase.
Also Read: XRP Price Slumps as Ripple Whales Dump 70M Coins: Is a Crash Imminent?
Key Support and Resistance Levels
XRP is currently testing a critical support level at $2.88. According to technical analysis, if XRP fails to maintain support at this level, it could experience a 10% decline, with the next support at $2.55. However, XRP’s position above the 200 Exponential Moving Average (EMA) suggests that the overall trend remains positive. If the market sentiment shifts, XRP could face strong resistance at $2.96, with short positions potentially being liquidated.

As Ripple locks more tokens into escrow and investors weigh market conditions, all eyes are on XRP’s ability to hold key price levels, with potential for significant movements in the coming days.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.