XRP (CRYPTO: XRP) scarcity on Binance has hit its highest level since July 2024, but XRP has broken below $1.40 support on high volume as rising Bitcoin (CRYPTO: BTC) dominance draws capital away from altcoins.

The Scarcity Signal

The XRP scarcity index on Binance climbed to around 0.75 in recent days, reflecting a notable decline in available supply on the exchange, according to a CryptoQuant analyst.

The metric suggests an XRP supply shock is likely due to increased withdrawals or a slowdown in deposits.

Historically, such high levels are associated with investor accumulation as assets move to private wallets rather than staying on exchanges. 

This reduces the likelihood of immediate selling and typically indicates growing investor confidence.

The persistently high scarcity index reflects that the market is becoming more sensitive to any increase in demand given the limited supply of tradable assets. 

If inflows to exchanges continue declining, the setup could support a potential bullish scenario.

The Breakdown

Despite the scarcity reading, XRP is slipping back toward the lower boundary of the symmetrical triangle that has compressed price since February. 

The breakdown resolves a multi-month triangle pattern to the downside.

Price is essentially at the rising support right now, making this a genuine do-or-die moment for the pattern.

The $1.40 level has now turned into resistance unless it is quickly reclaimed. As long as XRP trades below $1.40, sellers are in control with $1.37 and then roughly $1.31 as the next important downside levels to watch.

The Technical Picture

The Supertrend at $1.2993 remains green below, so the daily trend bias hasn’t flipped yet.

However, the SAR at $1.4980 overhead shows exactly how much work bulls still have ahead. That’s the level where the daily signal turns fully bullish.

Support sits at $1.38 (triangle floor), then $1.2993 (Supertrend). 

Meanwhile, resistance clusters at $1.4681, then $1.4980 (SAR), then $1.60.

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