XRP has seen a notable increase and decrease in exchange activity over the past few days. According to on-chain data, exchanges received the largest wave of XRP deposits this year before withdrawals reversed the trend.
The indicator used to measure this trend is called 'Exchange Flow Balance', which shows the net amount of an asset moving into or out of exchange wallets. When this value is positive, it suggests a net inflow of tokens to exchanges, often associated with selling activities and bearish market sentiment.
However, when the metric dips below zero, it indicates that more assets are leaving exchange-associated addresses than entering them. This trend can be seen as bullish for the cryptocurrency, as holders may be accumulating coins rather than selling them.