Binance's XRP reserve has dropped to approximately 2.61 billion tokens, the lowest level in six months, according to CryptoQuant contributor Arab Chain. XRP price is hovering near $1.11 after a 4% gain in the past 24 hours, recovering from a dip toward $1.06. The shrinking exchange reserve typically signals accumulation, but the price has yet to fully reflect this bullish on-chain signal.
Reserve Decline and Market Sentiment
XRP holdings on Binance have been declining since early July, with no meaningful inflows to replenish the reserves. Coins leaving exchanges often indicate that investors are moving tokens to private wallets, a behavior commonly associated with long-term holding. However, XRP slipped to $1.06 even as reserves continued to shrink, suggesting that weak sentiment and thin liquidity outweighed the positive on-chain data. Now that buyers have returned, the reserve trend may finally influence price action.
The Binance CVD Confirmation Score remains at negative 6.93 million, indicating that sellers have dominated order flow since XRP traded above $2.00 earlier this year. This metric shows that despite the recent bounce, selling pressure has not fully abated. Traders are watching the reserve data closely as a potential leading indicator for the next decisive move.
Key Price Levels to Watch
Technically, the $1.06 to $1.07 zone has consistently attracted buyers, helping to absorb the latest pullback. Immediate resistance lies between $1.12 and $1.15, where previous rallies have repeatedly stalled. A convincing break above $1.15 would require sustained buying pressure, not just a single green candle. If buyers defend current support and reclaim $1.15, momentum could extend toward the $1.30 to $1.40 region.
On the downside, a daily close below $1.06 would weaken the setup and could expose the $0.95 to $1.00 area. XRP still trades about 70% below its all-time high near $3.65, leaving ample room for upside, but patience remains key. The market is waiting for a catalyst to shift the balance from sellers to buyers.