XRP Withdrawal Addresses from Upbit Hit All-Time High of 3,200 Amid Extreme Fear

VADODARA, January 31, 2026 — The number of addresses withdrawing XRP from the South Korean exchange Upbit surged to an all-time high of 3,200, according to data from CryptoQuant. This daily crypto analysis reveals a stark contrast to Q4 2025, when daily withdrawals ranged from one to 53 addresses. Even previous peaks on December 15 and 17, 2025, only reached 2,750 and 3,051 addresses, respectively. Market structure suggests this liquidity grab may signal accumulation by large-scale investors, potentially easing immediate selling pressure on exchanges.

Investigation: Record XRP Withdrawals from Upbit

According to CryptoQuant, the 3,200 withdrawal addresses mark a significant spike. The Crypto Basic first reported this data. In Q4 2025, daily figures fluctuated between one and 53 addresses. Analyst CryptoMāshī noted that such withdrawals could indicate shifts to long-term investment, arbitrage, or staking. Reduced exchange supply often stabilizes prices by limiting immediate sell-side liquidity. This trend mirrors patterns seen in Bitcoin during the 2021 bull run, where exchange outflows preceded major rallies.

Market Context & Historical Precedent

Historically, large exchange withdrawals correlate with accumulation phases. Similar to the 2021 correction, where Bitcoin saw massive outflows before rebounding, XRP's current movement may signal a bottom formation. In contrast, the broader market faces extreme fear, with the Crypto Fear & Greed Index at 20/100. This divergence between on-chain activity and sentiment often precedes sharp reversals. Underlying this trend, South Korea's crypto market remains a liquidity hub, making Upbit data critical for global analysis.

Related developments include Bitcoin breaking below $83,000 support and Jupiter launching a Solana explorer, both amid extreme fear conditions.

Technical Architecture & Price Action

XRP currently trades at $1.69, down 3.90% in 24 hours. On-chain data indicates a potential Fair Value Gap (FVG) between $1.55 and $1.75. The Fibonacci 0.618 retracement level from the 2024 high sits at $1.55, acting as key support. Volume profile analysis shows increased withdrawal activity but muted price movement, suggesting accumulation in a low-liquidity environment. This creates an Order Block that, if broken, could trigger volatility. The RSI hovers near 40, indicating neutral momentum despite extreme fear sentiment.

By The Numbers

Why It Matters

This event matters for institutional liquidity cycles. Reduced exchange supply can lead to a gamma squeeze if demand surges. According to Ethereum.org's documentation on token economics, supply shocks often drive price stability. For XRP, a 5-year horizon suggests that accumulation during fear phases may align with broader adoption trends. Retail market structure currently shows panic, but large withdrawals hint at smart money positioning. This divergence typically resolves in favor of accumulators.

Expert Commentary

"The spike in withdrawal addresses from Upbit indicates potential accumulation by large-scale investors. While reasons vary—long-term holding, arbitrage, or staking—the net effect is reduced immediate selling pressure on exchanges. This can stabilize prices and set the stage for sharp movements once sentiment shifts." — CoinMarketBuzz Intelligence Desk

Market Outlook & Price Scenarios

Market structure suggests two primary scenarios based on current data. First, if accumulation continues, XRP could consolidate above $1.55 before a rally. Second, if extreme fear persists, a breakdown below key support may trigger further declines. Historical cycles indicate that such withdrawal spikes often precede 20-30% moves within three months.

• Bullish Invalidation Level: $1.85. A break above this resistance confirms accumulation and signals a trend reversal, targeting the 2025 high near $2.50.
• Bearish Invalidation Level: $1.55. The Fibonacci 0.618 support must hold to maintain bullish structure; a break below invalidates accumulation signals and could lead to a test of $1.30.

The 12-month institutional outlook hinges on broader market recovery. If XRP maintains exchange outflows, it could outperform in a rebound, similar to altcoin cycles in 2021. Regulatory clarity, as seen in past SEC cases, will also impact long-term trajectory.