- Binance XRP reserves hit four-month lows, signaling steady holder accumulation.
- Exchange outflows suggest reduced sell pressure and growing long-term conviction.
- Analysts watch $1.09 support as supply tightening may fuel a rebound attempt soon.
XRP holders continue moving tokens away from exchanges, reducing the amount available for immediate sale and fueling discussions about a potential supply squeeze. Recent data from Cryptoquant shows Binance’s XRP reserves have fallen to their lowest level in four months, signaling a notable shift in investor behavior.
While XRP remains under pressure after recent market weakness, the steady decline in exchange balances suggests many holders prefer accumulation over distribution. Consequently, analysts are closely monitoring whether tightening exchange supply could support a stronger recovery once broader market sentiment improves.
Binance Reserve Decline Signals Changing Holder Behavior
According to Cryptoquant data, Binance currently holds about 2.69 billion XRP, marking the platform’s lowest reserve level since early 2026. The decline follows several weeks of gradual outflows and reflects a steady reduction in XRP available on the exchange.
Historically, rising exchange balances often accompany increased selling activity. However, the latest trend points in the opposite direction. Investors appear more willing to transfer XRP into private wallets rather than keep assets on trading platforms.
Moreover, XRP has maintained relative stability despite the reserve decline. The token recently traded near $1.17 before slipping to around $1.13. This price resilience suggests sellers have not fully taken advantage of available liquidity, even during broader market uncertainty.
Related: XRP Price Prediction: Will Kalshi’s XRP Perpetuals Trigger a Break Above $1.17?
Falling Inflows Add to Supply Tightening Narrative
Additional on-chain observations from BankXRP highlight another notable trend. Large XRP deposits to Binance have weakened considerably compared with previous years.
Deposits exceeding one million XRP previously dominated exchange flows between 2022 and 2025. That activity has now thinned significantly.
As a result, fresh sell-side supply entering the market has decreased. Besides reducing immediate liquidation pressure, lower inflows may indicate growing confidence among long-term holders. Many investors appear comfortable holding positions above the $1 level instead of seeking short-term exits.
However, declining exchange inflows alone cannot guarantee higher prices. Trading volume, liquidity conditions, macroeconomic developments, and whale transactions continue influencing XRP’s market direction.
Analysts Watch Key Resistance Levels
Technical analysts remain divided on XRP’s next move. CasiTrades noted that XRP continues defending a major support zone near $1.09. Current price action keeps an ABC corrective structure intact, with a potential upside target near $1.24.
Additionally, the analyst outlined alternative scenarios, including an extended consolidation pattern that could limit gains near $1.185. A stronger bullish outcome would require a decisive breakout above $1.30.
Despite the constructive exchange-supply backdrop, risks remain. CasiTrades believes failure to overcome major resistance could eventually reopen the path toward $0.90. Significantly, XRP would need to reclaim and hold $1.65 as support to fully invalidate that bearish scenario.
XRP currently trades near $1.13, down 0.82% over the past 24 hours and 8.3% during the last seven days, while maintaining a market capitalization of roughly $69.7 billion.
Related: Bitcoin Price Prediction: RSI Hits 23 as BTC ETFs Bleed Back to Pre-Election Levels
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