XRP has witnessed a remarkable outflow of 1.4 million tokens, translating to over $336 million, from centralized exchanges within a single day. This data was highlighted by Ripple Bull Winkle, utilizing a chart sourced from CryptoQuant.
The timing of this withdrawal coincides precisely with the launch of XRP ETF products, suggesting a potential supply shock as these products become available in the market. The accompanying chart illustrates a sharp decline in exchange reserves, depicted by a blue line, while the price line, represented in black, remains elevated.
Notably, the reserve chart features a significant vertical spike around mid-2025. Following this spike, reserves continued to decrease, a trend that is mirrored in the current outflow situation. Analysts suggest that this recent shift resembles the initial stages of a supply shock event.
The chart spans from late 2024 to mid-2025, starting with reserves in a downward trend before experiencing fluctuations. The recent contraction is the most pronounced since the mid-2025 spike, creating a substantial gap between the price curve and the supply curve.
As exchange reserves decline into early November 2025, the price of XRP remains stable within the range of $0.82 to $0.92. Observers note that this pattern is easily interpretable without the need for technical indicators, emphasizing the volume of tokens exiting exchanges rapidly.
This 1.4 million XRP outflow is characterized as abnormal, indicating a significant structural change in the market. While the price curve holds steady, the sharp decline in reserves appears to be a rare occurrence, setting this moment apart from previous trends.
Historically, the reserve chart has shown several expansions and contractions from 2024 to 2025; however, none have matched the current abrupt drop. The reserves had previously peaked around mid-2025 before declining towards late 2025, now resting near their lower limits.
Analysts assert that this is a precursor to potential supply shocks, with the simultaneous timing of the ETF launch and substantial withdrawals likely to affect future price movements. As these two events align closely on the chart, market participants are left to ponder whether this 1.4 million XRP outflow signifies the beginning of a deeper supply shock.
