XRP wallet activity has shifted decisively toward withdrawals, suggesting investors increasingly prefer self-custody over centralized exchanges.
Over the past week, withdrawals have been greater than deposits across major platforms. As a result, the total number of wallets declined by roughly -13,026. Coinbase accounted for the largest shift with -8,900, while Binance followed at -2,626 and Crypto.com reached -1,500.
Prior to the current withdrawal trend, large increases in deposits were seen in July and again in October 2025. Both times these trends led to declines of more than 65% for Ripple’s [XRP] price. At press time, XRP traded at $1.14, indicating easing seller pressure on the asset.
Therefore, exchange reserves, netflows, derivatives positioning, and broader market liquidity remain essential for confirming whether shrinking exchange supply can support sustained price strength.
Still, they may merely reflect temporary positioning before sentiment, demand, and capital flows improve across spot and derivatives markets simultaneously.
Can shrinking exchange supply push XRP higher?
Despite withdrawals continuing to reduce the supply of XRP, broader markets lack convincing evidence of sustained spot accumulation. At press time, Binance’s balance stood at 2.6 billion XRP and has been declining steadily from above 3.1 billion.
This trend reduces the immediate supply of sellers. Meanwhile, inflows from whales have remained subdued. Still, transfers bound for exchanges have dropped to roughly 140 XRP after major spikes earlier this year.
Large deposit bands have also muted, suggesting easing distribution pressure. However, the 90-day Spot Taker CVD has returned to neutral after briefly being buyer dominant in May. As a result, aggressive buyers in the spot haven’t regained control yet.
Until buying pressure strengthens, shrinking exchange supply alone is unlikely to sustain XRP’s recovery.
While spot demand remains subdued, broader market positioning offers additional insight into XRP’s recovery. Recently, AMBCrypto reported that large holders have continued accumulating during recent exchange outflows, while long-term holders remain profitable without accelerating distribution.
In this context, concentrated holdings among top wallets still warrant close monitoring. Derivatives positioning also remains constructive. Open Interest stays steady at $2.5 billion, while funding rates fluctuate between neutral and mildly positive levels.
Together, these data signals suggest a cautious conviction, rather than speculative excess. Therefore, XRP’s recovery depends upon sustained accumulation and healthy participation in futures contracts.
Final Summary
- XRP withdrawals continue tightening exchange supply, but spot demand remains too weak to confirm a sustained recovery.
- Whale accumulation supports a constructive outlook, though stronger spot buying is still needed for further upside.
Be the first to comment