XRP Reserve Decline on Binance Signals Strategic Supply Shift
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XRP Reserve Decline on Binance Signals Strategic Supply Shift

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Azeez Mustapha

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XRP reserves on Binance have fallen to their lowest level since early 2024. Meanwhile, the token’s price remains below $1.50, highlighting a notable supply divergence.

Currently, the exchange holds roughly 2.5 billion XRP, down from about 3.2 billion in November 2024. As a result, balances have returned to levels last recorded in January 2024.

Historically, shrinking exchange reserves reduce immediate selling pressure. Therefore, market participants often interpret sustained outflows as evidence of long-term accumulation by institutions and large holders.

Similarly, Ethereum recently experienced declining exchange balances during a consolidation phase. In the same vein, XRP’s accelerating reserve drop suggests investors increasingly prioritize custody over short-term liquidity.

XRP Reserve Shift on Binance Points to Deeper Market Realignment

Paula Talks Crypto connects the falling XRP reserve balance on Binance with broader structural changes. She pairs the reserve decline with the XLS85 escrow upgrade on the XRP Ledger, Brad Garlinghouse joining a U.S. advisory committee, and Binance integrating RLUSD. According to Paula, shrinking exchange reserves tighten liquidity, potentially amplifying volatility without guaranteeing direction. Meanwhile, upgraded escrow tools and deeper regulatory engagement strengthen XRPL’s institutional positioning. She concludes that XRP’s evolving infrastructure, rather than short-term hype, may define its next market phase.

XRP Key Levels to Watch

COINBASE:XRPUSD Chart Image by Nice11111XRP recorded a bullish breakout from a downward parallel channel in January. The move briefly lifted price above the 9-period and 21-period Moving Averages. However, the breakout lacked sustained momentum to sustain higher targets for crypto signals, resulting in a renewed price decline.

XRPUSD Key Levels

Demand Levels: $1.2060, $0.9970
Supply Levels: $1.7930, $2.0000

Ripple Metrics
Total Market Capitalization: $2.35T
XRP Market Capitalization: $90B
Ripple Volume: $3B
Market Rank: #4

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