- XRP reserves on Binance have dropped to their lowest level since 2024.
- Spot market data shows buyers regaining control after a sell-dominant phase.
- Large traders continue to dominate order flow during the recent price decline.
XRP is flashing a classic supply squeeze signal as on-chain data reveals a massive divergence between price action and exchange liquidity. While the asset has corrected to $2.00; down 11.2% this month, reserves on the world’s largest exchange, Binance, have collapsed to their lowest point in nearly two years.
The shift appears in CryptoQuant metrics tracking exchange reserves, spot trading behavior, and average order size.
XRP Exchange Reserves Decline
Recent data from CryptoQuant shows XRP reserves on Binance have fallen to about 2.6 billion XRP, the lowest level recorded since 2024. Throughout most of last year, Binance held more than 3.0 billion XRP. Balances peaked above 3.25 billion XRP around October and November 2024.
The decline became more pronounced after late 2024. By early 2025, reserves had dropped below 3.0 billion XRP and continued to decline through midyear. By October and November 2025, the balance had fallen by roughly 400 million to 500 million XRP compared with early 2024 levels.
Lower exchange reserves typically indicate that investors are withdrawing assets from trading platforms. Coins held outside exchanges are less likely to be sold quickly, reducing near-term selling pressure. The reserve decline has occurred while XRP has continued to trade well above its early 2024 price range.
Related: XRP Price Prediction: ETF Demand Grows, But Price Action Still Favors Sellers
Spot Market Buyers Regain Control
Spot market data provides additional context. CryptoQuant’s 90-day Spot Taker Cumulative Volume Delta shows that XRP trading has recently shifted back to taker-buy dominance. This means buyers are executing market orders more aggressively than sellers.
From late 2024 into early 2025, the metric showed extended periods of taker-sell dominance as XRP rallied toward cycle highs near $3.20. That phase reflected active selling into strength. Following the pullback toward the $2 range, the CVD flipped green again, signaling renewed demand.
Currently, XRP trades at $2.00, a 0.6% decline in the past day. The token has now seen a 4.6% and 11.2% decline in the past week and month, respectively.
According to analyst Xaif Crypto, taker-buy dominance near lower price levels often appears when selling pressure begins to ease and sentiment starts to stabilize. He suggests this could mark the beginning of a bullish outlook.
Whale Activity Remains Elevated
A third signal comes from XRP’s spot average order size. Data tracking order size shows that large traders continue to dominate market activity, even during the recent decline. From mid-2025 onward, big whale orders remained frequent as prices softened.
This pattern has appeared before during past XRP bottoming phases, when larger participants accumulated positions ahead of broader market moves. Xaif Crypto noted that the whale buying indicates whales are expecting XRP price uptick.
Related: XRP Price Prediction: Descending Trendline Caps Recovery As ETF Launch Fails To Ignite Breakout
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