XRP Declines to $1.80 Amid Continued Decrease in Binance Reserves

XRP is currently facing challenges in regaining bullish momentum as selling pressure persists within the market. Although market sentiment is cautious, on-chain data suggests a notable shift, with XRP reserves on Binance decreasing significantly. This drop may indicate that holders are moving assets to self-custody rather than preparing to sell aggressively.

Key Takeaways

XRP is trading around $1.80, struggling with bullish momentum as selling pressure continues.
Binance reserves for XRP have decreased to approximately 2.64 billion— its lowest level since 2024.
The decline in reserves indicates reduced supply for immediate sale, hinting that investors are moving assets into private wallets.
XRP's price has been on a downtrend since hitting high levels of $3.60, currently hovering near long-term support around $1.75–$1.80.
If XRP fails to reclaim the $2.10–$2.20 range, the risk of further declines remains elevated.

XRP's Challenges in Regaining Bullish Momentum

XRP is currently having a tough time gaining bullish momentum as ongoing selling pressure overshadows market conditions. The price action remains weak, and recent recovery attempts have not succeeded in generating significant demand. With buyers largely absent, the general sentiment in the XRP market has turned cautious, prompting warnings from analysts that XRP might experience further downward movement in the coming weeks if the current situation continues.

Despite this bearish outlook in pricing, on-chain data reveals an essential structural shift. According to Binance data, XRP reserves on the exchange have dwindled to around 2.64 billion XRP, representing their lowest level since 2024.

XRP Ledger Exchange Reserve | Source: CryptoQuant

This reduction indicates a significant amount of XRP has been withdrawn from the platform, leading to less supply readily available for immediate sale. In on-chain analytics, decreasing exchange reserves are usually interpreted as a movement toward self-custody, rather than aggressive selling.

The notable divergence between declining reserves and weak price action complicates the overall market outlook. Even amid clear market pressure and diminishing momentum, the lack of rising reserves implies that the recent price drop wasn't spurred by a surge of exchange selling. Instead, it points to a lack of demand rather than a flood of sell orders.

Declining Reserves Indicate Eased Selling Pressure

A recent report from CryptoQuant highlights the significant decline in XRP reserves on Binance, indicating continued outflows from the exchange. This decrease means that fewer tokens are available for immediate sale— a situation that analysts typically associate with reduced sell-side pressure.

Rather than preparing to exit, investors seem to be transferring XRP to private wallets, suggesting a preference for holding or utilizing assets outside active trading platforms.

Arab Chain further supports this perspective, noting that XRP’s price has dropped to around $1.80 after failing to maintain levels above $3, which previously signified a bullish peak. Importantly, this price decline has not coincided with an increase in exchange reserves.

In previous market cycles, sharp price drops were often accompanied by rising reserves as significant inflows to exchanges indicated aggressive selling. However, this pattern is notably missing in the current situation.

The present scenario suggests that XRP’s weakness stems more from fading demand than from heavy distribution. Sellers do not appear to be flooding exchanges, even as prices decline— a crucial distinction for understanding potential downside risks.

With XRP reserves at their lowest level since 2024, it could indicate the market is beginning to build a more solid foundation. Should buying momentum return, a reduced supply on exchanges may lead to faster and more significant price movements compared to periods with high reserves.

Testing Long-Term Support Amid Persistent Bearish Trends

XRP's price continues to reflect a noticeably weakened market structure, as the chart reveals a prolonged corrective phase following a steep drop from the $3.60–$3.70 highs. After reaching its peak in late summer, XRP began a steady downtrend characterized by lower highs and ongoing selling pressure, eventually crossing below the psychological level of $2.00. This breakdown notably shifted the market structure in favor of bears and accelerated the price move toward the current $1.85–$1.90 range.

XRP consolidates around key demand | Source: XRPUSDT

From a technical standpoint, XRP is now trading below its 50-day and 100-day moving averages, both of which have reversed direction and are currently acting as resistance. The crucial 200-day moving average, positioned near the $1.75–$1.80 area, has become essential to monitor.

Currently, prices are hovering just above this long-term support level, indicating that selling pressure is abating, but not entirely exhausted. Meanwhile, declining volume during recent sessions suggests that participation in the market is waning rather than indicative of substantial accumulation.

As long as XRP remains below the $2.10–$2.20 range, the potential for further downward movement continues to be heightened. A decisive move below the 200-day moving average could pave the way for a deeper correction, potentially heading towards the $1.60 zone. Conversely, a strong reclaim of the $2.00 level followed by acceptance above short-term moving averages would signal a potential trend reversal.

Featured image from ChatGPT, chart from TradingView.com