Large XRP holders are moving significant amounts of tokens off exchanges amid XRP’s ongoing price weakness.
The trend has created a notable divergence that some market observers believe could eventually lead to a supply squeeze.
XRP community figure Xaif, citing data from CryptoQuant, said daily XRP outflows of more than 1 million tokens have accelerated even as the coin has fallen over 20% since May.
“Someone is absorbing every dip,” Xaif wrote, pointing to persistent large withdrawals while prices remain under pressure.
In a separate update, Xaif noted that roughly 89 million XRP was withdrawn from Binance in a single day. At the same time, XRP funding rates dropped to -0.012, one of the most bearish readings seen in recent months.
Binance XRP Reserves Keep Falling
Crypto commentator Diana, also citing CryptoQuant data, said XRP supply on Binance “keeps disappearing” while traders place their largest bearish bets in months.
According to the data, Binance’s XRP reserves fell from approximately 2.766 billion tokens on May 24 to about 2.691 billion today.
The decline in reserves comes as funding rates remain negative. This suggests many derivatives traders are positioning for further downside.
465 Million XRP Withdrawn in Nine Days
The latest observations align with a report from CryptoQuant analyst Amr Taha. He found that Binance recorded around 465 million XRP in large daily outflows between June 3 and June 11.
According to Taha, transactions involving more than 1 million XRP have become increasingly frequent since the start of June. The repeated withdrawals suggest surging whale activity, with large investors buying XRP on dips.
He added that the trend is not the result of a single large transfer. Instead, it reflects a series of sizable withdrawals spread across multiple days.
Meanwhile, large exchange withdrawals do not automatically confirm accumulation. However, they reduce the amount of XRP readily available on exchange order books. In effect, this reduces selling pressure.
Why Funding Rates Matter
Negative funding rates typically mean short sellers are paying long traders to keep their bearish positions open. This usually reflects expectations of lower prices.
However, extremely negative funding can also increase the risk of a short squeeze. If XRP unexpectedly moves higher, short sellers may be forced to buy back their positions, adding further upward pressure. As Xaif puts it, “every short is future buy pressure.”
According to CoinMarketCap data, XRP is trading at $1.14. The token is up 0.22% over the past 24 hours and 4% over the last week. However, it remains down roughly 20% over the past month and about 38% since the start of the year.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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