XRP Price Shows Recovery Signs: Could a $10 Target Be on the Horizon?

XRP has bounced back strongly, gaining 14% on Wednesday and recovering half the losses suffered after President Trump’s recent tariff announcement. This impressive rally comes amid signs that new buyers are holding for the long term rather than quick trading. With exchange supplies dropping significantly, some analysts are questioning whether XRP could be setting up for a potential surge toward the $10 mark.

XRP Market Recovery Gains Momentum

Since the early part of March, the cryptocurrency market has remained highly volatile, especially with respect to XRP’s attempts to move in a particular direction. Things turned around on Tuesday when the US Secretary of Commerce’s hints of possible tariff relaxations on Canada and Mexico sent price movements offshore. This created an immediate bullish sentiment within crypto traders as the rush to buy assets, particularly those suggested as possible candidates for inclusion to Trump’s strategic reserves, soared.

In XRP’s case, the most striking price action was observed when its low for the day on Tuesday was at $2.20 and it managed to climb back to $2.50. This increase in value represents a massive break above a declining trend line after so many days of consolidation and returns some confidence to bulls hoping for a recovery to XRP’s more favorable pricing.

Exchange Withdrawals Signal Bullish Sentiment

A strong reason that favors the bullish sentiment on XRP comes from the on-chain data which suggests that there are massive outflows from major exchanges. As per the data provided by CryptoQuant, Binance has experienced a net withdrawal of around 25 million XRP tokens, which is close to $500 million since the 2nd of March. This reduced total exchange deposits from 2.9 billion XRP tokens to 2.87 billion.

• Use your Binance referral ID for purchases of these 3 promising altcoins.

The exchanges’ supply tends to decrease substantially, indicating that the investors are moving assets to long-term storage instead of having them available for trading. In general, when large holders (popularly referred to as “whales”) take out large amounts of tokens from the exchanges during a market dip, it is usually viewed as bullish for the asset.

There are also further encouraging this sentiment with XRP ETFs and other speculation that it will be included in the strategic reserves of the Treasury of the United States. If these scenarios play out together with the supply decrease, the magnitude of the resultant squeeze could clear the path of XRP to the much speculated price level of $10 that supporters are looking forward to.