XRP exchange reserves hit a notable inflection point heading into 2026. Major spot trading venues are seeing significant outflows—over 300 million XRP has exited key platforms since October 2025, echoing the pattern we witnessed in late 2024 before the rally from $0.50 to $3.29. The squeeze in exchange liquidity mirrors November 2024's pre-run dynamics. Meanwhile, spot ETF inflows remain steady, suggesting institutional accumulation continues despite spot inventory tightening. The divergence is real: some market observers are targeting the $5-$10 range as catalysts build, while others flag pullback risks worth monitoring. The on-chain data—particularly the reserve drain—tells an interesting story about where buyers and holders are positioning themselves right now.