**Key Takeaways**
XRP exchange reserves saw a dramatic surge of over 1.2 billion tokens in just 24 hours, with Binance alone adding nearly 610 million XRP. This unexpected influx has fueled anticipation for potential market movement. Futures demand is rising as CME open interest surged by 74% but price gains have lagged behind peers. Meanwhile, the recent surge coincides with a $2.73 support level retest in XRP, suggesting strategic buying amid potential sell-offs.
**Price Action and Market Sentiment**
Despite this influx of reserves, XRP managed to jump above the $3 mark, rising 8.43% for the month following positive U.S. PPI data. This surge suggests a combination of strategic positioning by exchanges and renewed market optimism, potentially due to the anticipated US XRP ETF decision expected in October.
Technical signals suggest easing sell pressure, with indicators such as RSI and MACD showcasing a softening bearish setup. However, this reserve influx might reflect strategic preparation for potential price fluctuations, as on-chain data suggests heavy supply dynamics are at play.
**Market Signals and Outlook**
XPR futures demand experienced significant growth (74% increase in open interest) but lagged behind broader market trends. Despite the rise in XRP futures volume, a 3M market buy on Binance triggered cascading liquidations, adding a net 10M XRP to buying pressure. This showcases the depth of liquidity available for XRP in the market.
Compared to other altcoins such as Solana, Cardano and Ethereum, which have seen strong gains this month, XRP has shown more modest performance, suggesting its relative underperformance.
**What’s Next?** The upcoming approval of a US XRP ETF (95% chance) could potentially trigger a new price surge for XRP, with levels possibly reaching $3.40-$3.60. Without such approval, the market might see renewed selling pressure as these reserves could signal impending sell-offs.