XRP Dip Buying Intensifies as Exchange Reserve on Binance Falls to 4-Month Low

The amount of XRP on exchanges is dropping fast, as whales and sharks appear to be heavily stacking the altcoin.

XRP is seeing increased accumulation, evident in the number of coins remaining on exchanges. Over the past several months, the amount held on Binance, the largest crypto platform by trading volume, has continued to decline, reaching levels last seen in four months.

XRP Reserve on Binance Reaches 4-Month Low

Data from CryptoQuant shows that the XRP exchange reserve on Binance has dropped to 2.64 billion tokens, about 4.2% of the asset’s circulating supply. While this is still sizable, it marks a notable decline from the figures recorded months back.

For context, Binance held roughly 2.8 billion XRP in its reserve in March. This figure reduced slightly before reaching a high of 2.78 billion in May. Today, the exchange’s XRP reserve has further dropped by 5% to 2.64 billion.

Notably, the last time the amount of the token held by Binance hit this low was in February, over four months ago. Then the exchange’s reserve reached 2.55 billion, as market users bought the market dip.

Now, the current reserve drop suggests that smart money is back to buying the dip. Market users are increasingly moving XRP from where it can be easily sold to self-custody wallets, possibly for long-term holding.

Such activity is bullish in every sense. Not only does it reduce selling pressure, but it also shrinks available supply. That way, steady demand would have more impact on prices than when a larger supply is in the market. Additionally, it reflects confidence in XRP’s mid- and long-term price prospects.

XRP Exchange Outflow Beyond Binance

Interestingly, the exchange outflow is not limited only to Binance. Coinglass data shows that over the past 10 days, a net total of $42.67 million has left trading platforms globally. During this period, inflows stand at $822 million and outflows at $864.6 million, culminating in the net difference.

This trend has extended even to recent data. In the last 24 hours, holders withdrew $69.84 million, larger than the inflows of $64 million by $5.78 million.

The accumulation is notable because it comes despite the ongoing correction. XRP is down 7% in the past 24 hours, joining a broader market trend. Yet, market users see each dip as an opportunity to buy more, looking beyond the short-term bearish trend.

Aligning Bullish Metrics

Other metrics also tick bullish for XRP. For context, active XRP addresses have increased 36% in the past two weeks as network activity improves. With more receiving wallets active on the XRPL Ledger, it also confirms that outflows are moving to long-term self-custody wallets.

Additionally, the TD Sequential also recently printed a buy signal on the XRP daily chart. This pattern confirms that selling pressure is nearing exhaustion, and a rebound could follow in the coming days.

In the meantime, XRP trades at $1.05, holding above the $1 support.