XRP is back in focus as technical signals and on-chain data combine to reveal a nuanced view of its market momentum. Market analyst Ali Martinez notes that XRP is trading within well-defined levels , with resistance at $1.86 and strong support at $1.02 and $1.38. Source: Ali Martinez These aren’t just chart markers; they highlight key psychological and liquidity zones that can influence trader sentiment and price action in the coming weeks, with the current price at $1.37 per CoinGecko . The $1.86 level is a key near-term resistance; a strong breakout above it could confirm renewed bullish momentum and draw sidelined buyers back in. Conversely, $1.02 and $1.38 act as critical support zones where pullbacks may find demand, offering potential value entry points and helping to steady price action. Advertisement These clearly defined levels provide a practical roadmap for risk management, entry timing, and scenario planning in a volatile market. Falling Exchange Balances Add New Twist to Price Outlook Beyond price action, supply dynamics are strengthening the narrative. Crypto researcher SMQKE noted on X that new data from 21Shares shows XRP exchange balances have dropped to about 1.7 billion, their lowest level in seven years. Since exchange balances reflect tokens readily available for trading, a decline typically signals that holders are moving XRP into private wallets or long-term storage , reducing liquid supply and potentially tightening market conditions. Lower exchange supply reduces the pool of coins readily available to sell. If demand stays steady or increases while fewer coins sit on exchanges, supply tightens, often creating upward price pressure . While this doesn’t ensure a rally, it tilts the supply–demand balance in a way many analysts consider price-supportive. Therefore, XRP’s clear technical levels and declining exchange balances point to a pivotal setup. The market is hovering between cautious optimism and critical inflection points. What happens next will likely depend on whether buying pressure can break resistance or if wider crypto weakness drags the price back to support. In either scenario, XRP remains a high-focus asset, with both chart signals and on-chain trends driving expectations.