XRP is testing a key support zone as U.S. spot ETF buying rises and exchange reserves decline, according to analysts Ali Charts and Crypto Patel. More than 4.8 billion XRP changed hands between $1.31 and $1.38, making that zone a focal point during the current correction, while U.S. spot XRP ETFs purchased more than $105 million worth of XRP last week, adding fresh demand to the market.

Binance's XRP reserves also fell by roughly 500 million tokens to 2.6 billion, reaching levels last seen in February 2024.

XRP Tests Support as ETF Buying Rises

Ali Charts noted that XRP is trading above the $1.31-$1.38 support zone, a range in which more than 4.8 billion XRP were previously acquired. In his view, the area could hold during the ongoing correction.

At the same time, U.S. spot XRP ETFs recorded more than $105 million in XRP purchases last week. However, Ali Charts said this ETF buying has not yet translated fully into price strength. ETF flows have become a widely followed demand signal in crypto markets since the approval of U.S. spot Bitcoin ETFs in January 2024, and analysts routinely track whether sustained inflows coincide with price moves.

The analyst also identified a bullish flag forming on XRP's hourly chart. XRP is currently testing the flag's support, and an hourly close above $1.38 would confirm the breakout, with $2 then becoming the target he highlighted. That places the $1.31-$1.38 range at the center of attention: price action around this zone will determine whether the reported setup remains intact.

Related coverage: XRP ETFs draw $105M as price faces $1.55 resistance again

Binance XRP Reserves Drop to 2024 Levels

Crypto Patel reported a separate shift involving XRP held on Binance. According to the analyst, Binance reserves fell from 3.1 billion XRP to 2.6 billion XRP — a decline of about 500 million XRP, valued at roughly $675 million.

Patel said Binance's XRP reserves have reached levels not seen since February 2024. Notably, the reserve decline came despite XRP gaining nearly 30% last month, and Patel highlighted the change as XRP holdings on the exchange continued to fall. Falling exchange reserves are often watched as an indicator of tokens moving off exchanges, which analysts typically read alongside other demand measures such as ETF flows rather than in isolation.

These figures add another data point to the market picture cited by the analysts: while ETF purchases increased, exchange-held XRP declined over the same period.

XRP Price Levels Remain Under Watch

Ali Charts identified $1.31-$1.38 as the main support range for XRP and linked a break above $1.38 with confirmation of the hourly bullish flag. His analysis does not identify another support level below this range. Above it, the stated target remains $2 following breakout confirmation.

Crypto Patel, meanwhile, focused on the reduction in Binance reserves, reporting that XRP gained nearly 30% last month even as exchange holdings declined. For readers tracking what comes next, the analysts' own markers offer the concrete checkpoints: whether XRP holds the $1.31-$1.38 zone on the hourly chart, and whether ETF purchases and falling exchange reserves persist in the weeks ahead.