On-chain data reveals a compelling divergence: while XRP price has corrected, exchange reserves on Binance have dropped sharply, signaling a potential “end of selling pressure.”
On-Chain Insight
According to the XRP Ledger: Exchange Reserve chart, XRP holdings on Binance have experienced a steep decline, falling to 2.66 billion XRP. This marks the lowest exchange balance recorded since July 2024.
A significant decrease in exchange reserves is typically interpreted as a bullish signal. It suggests that investors and whales are transferring assets into self-custody (cold wallets) rather than keeping them on exchanges for immediate sale, effectively creating a supply shock.
Technical Context
This reduction in liquid supply is unfolding precisely as price action reaches a critical inflection zone:
Demand Zone: XRP is currently testing the major support range between $1.80 and $1.90 (green box). Holding this level is essential to preserve the broader bullish market structure.
Momentum: The RSI is positioned in the lower range, indicating that bearish momentum is weakening, although a confirmed bullish reversal signal has not yet emerged.
Conclusion
The confluence of strong technical support at $1.80 and Binance exchange reserves reaching a six-month low strengthens the case for a potential price reversal.
If buyers are able to successfully defend the $1.80 level, the reduced liquid supply on exchanges could act as fuel for a swift upside recovery. Conversely, a decisive breakdown below this support would invalidate the bullish on-chain thesis.
Written by CryptoOnchain
