The timing is interesting as Binance’s reserves have fallen to levels not seen since early 2024. As liquidity thinned, the price fell 4.5% towards $1.50. This is not a coincidence that the market can ignore.
at chain data show Binance Currently, it only holds about 2.5 billion XRP. This is a significant squeeze on the selling side. Less supply left on an exchange usually means less immediate selling pressure.
And if sentiment gradually turns bullish again, this kind of liquidity outflow could add fuel quickly. If supply tightens and demand awakens at the same time, things could move faster than most expect.
- Binance’s XRP reserves have plummeted to around $2.5 billion, the lowest level since early 2024.
- Approximately 700 million coins have left exchanges since November 2024, suggesting they may be moved to cold storage.
- Analysts interpret the contraction in foreign exchange balances as a classic accumulation signal that reduces selling pressure.
Will there be a supply shock?
The change is not small. As of November 2024, Binance held approximately 3.2 billion XRP. Today, that number is approaching 2.5 billion. This translates into the disappearance of approximately 700 million tokens, or approximately 22% of the stack from exchange wallets in just over a year.
Analysts say this type of decline typically signals tight sell-side liquidity. Once a coin leaves an exchange, it is often self-custodial. This is usually a long-term strategy and tends to be done by institutions and whales when they are positioning rather than trading.
Even more interesting is the timing. This reserve outflow occurred shortly after Binance rolled out full XRPL support for RLUSD. Many expected an increase in chain speed. Instead, XRP itself began to leak.
There will be less supply on the exchange. Price reaction becomes stronger. This combination is becoming hard to ignore.
short squeeze scenario
What happens next comes down to funding rates. XRP funding recently hit a 10-month low, and historically this type of reset often precedes strong bull markets.
If exchange supply continues to shrink while short selling becomes crowded, a clean break above $1.55 could trigger a sharp decline towards $1.80.
The establishment has also received support from improving regulatory sentiment, particularly as Ripple’s leadership has increased visibility in Washington.
For now, $1.45 is an important level to watch. If the price stays at that level while foreign exchange reserves continue to dwindle, the bulls want to see that before aiming for new highs.
The post Binance’s XRP Reserves Drop to 2024 Lows Due to Trader’s Eye Accumulation Signal appeared first on CryptoNews.
