Binance XRP Reserves Fall to 2.6B, Lowest Level in Five Months: Will Price Rebound?

Binance’s XRP reserves have dropped to their lowest level since February, according to CryptoQuant data shared by Arab Chain.

The decline suggests a continued reduction in the amount of XRP held on the world’s largest cryptocurrency exchange.

Notably, Binance’s XRP reserves fell to about 2.61 billion XRP at the start of July. They have since stabilized around that level, as no major inflows have been recorded to replenish the exchange’s reserves.

XRP Price Drops Despite Lower Exchange Supply

Amid the decline in reserves, XRP’s price fell to around $1.06 over the same period. This suggests that lower exchange balances alone were not enough to trigger a price recovery.

Essentially, broader market conditions continue to drive XRP’s performance. Liquidity, trading activity, and investor sentiment remain the primary factors influencing the price, even as exchange-held supply declines.

Lower Binance Reserves May Reduce Selling Pressure

Binance’s reserves remaining at 2.61 billion XRP mark the lowest level in five months. Lower exchange balances indicate that investors are moving tokens off trading platforms, reducing the amount of XRP readily available for sale.

While the decline in reserves has not yet pushed prices higher, it could help reduce selling pressure over the medium term if demand improves. A tighter exchange supply, combined with stronger buying activity, could create more favorable conditions for XRP.

Notably, Binance held more than 3 billion XRP in reserves a year ago. At the time, XRP was trading above $3.25, near its cycle peak. However, the price later declined by about 72%, reaching $1.04 earlier this month.

During the same period, Binance’s XRP reserves largely mirrored the price movement, declining steadily over the past 12 months as XRP fell. This runs counter to the popular view that declining exchange reserves necessarily indicate accumulation and are inherently a bullish signal.

Meanwhile, given how far the bear market has progressed, the situation could be stabilizing, potentially opening the door for a bullish recovery. At press time, XRP was trading at $1.11, up 4.62% over the past 24 hours. Its weekly performance has also returned to positive territory.

Selling Pressure Still Weighs on XRP

In a separate CryptoQuant analysis, Arab Chain highlighted Binance’s Cumulative Volume Delta (CVD) Confirmation Score as evidence of continued selling pressure. The CVD stood at approximately -6.93 million, indicating that sell orders continued to outpace buy orders on the exchange.

Meanwhile, the 30-day Price-CVD Confirmation Score stabilized at around 0.84, suggesting that the relationship between price action and order flow remains intact. However, buying activity is still too weak to support a sustained reversal.

Arab Chain said that while declining exchange reserves can tighten available supply, XRP’s price will continue to depend on stronger demand, improved liquidity, and sustained buying pressure. A positive CVD, along with a stronger Confirmation Score, could signal renewed buying interest and support a broader recovery.