supplycompression

XRP exchange balances collapsed from 3.76 billion in October 2025 to around 1.66-1.7 billion by early February 2026—removing over half the readily available supply in four months. That's not gradual. That's aggressive compression.

CryptoQuant contributor The Alchemist 9 analyzed three indicators: Binance exchange inflows, USD liquidity (MAG-XRP), and $XRP liquidity. Before the 2024 rally, Binance recorded sharp inflow spikes—tokens moving onto exchanges—before a period of strong volatility and price expansion. That pattern preceded accumulation, not distribution.

USD liquidity has been declining recently, making the order book thinner and price more sensitive to sudden moves. $XRP liquidity compressed significantly before the earlier breakout. The same compression is forming now. Less liquid supply available, tighter spreads, volatility building. The setup mirrors 2024's pre-expansion conditions.

#xrp #Ripple #SupplyCompression #CryptoQuant #liquidity