The XRP price continues to struggle amid bear pressure within the market. On Friday, XRP rose by about 5.7%, which, while positive, was only a relief to an initial 7.1% loss seen earlier during the week. In a recent post on QuickTake, pseudonymous analyst CryptoOnchain reveals that the amount of XRP on the Binance exchange has dipped extensively to the downside of the charts. This post derives its credibility from the XRP Ledger: Exchange Reserve – Binance metric.
CryptoOnchain explains that the XRP exchange reserves have recently fallen to levels as low as 2.5 billion XRP. As of November 2024, the Binance reserves had peaked at approximately 3.2 billion in XRP, and have since taken on a downward trend. Compared to its current readings, it becomes apparent that investors have pulled more than 700 million XRP off Binance in the past 15 months. Usually, when coins are moved en masse to exchanges, it signals preparedness among investors to offload their tokens.
On the other hand, reduced inflows to exchanges reflect increasing reluctance to shave off holdings and growing investor conviction. Hence, CryptoOnchain explains that the outflow of XRP from exchanges suggests a significant reduction in sell-side liquidity. CryptoOnchain further explains that declining exchange reserves have often served as signs of upcoming accumulation, and could be a bullish signal in the short-term. This present scenario paints a more optimistic view for the XRP price.
The crypto pundit summarizes the situation, stating that XRP reserves hitting a two-year low could create a supply shock such that any rebound in market demand could initiate a significant price gain. As of press time, XRP holds a valuation of $1.40. CoinMarketCap data reflects that the cryptocurrency has seen a 3.07% gain over the past 24 hours.
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