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Binance XRP Holdings Decline to Lowest Levels of 2024 as Traders Monitor Accumulation Indicators
Binance’s reserves have decreased to levels not observed since early 2024, and the timing is noteworthy. As liquidity diminishes, the price surged 4.5% towards $1.50. This is not a coincidence that the market can overlook.
On-chain data indicates that Binance currently possesses approximately 2.5 billion XRP. This represents a significant reduction on the sell side. A lower supply on exchanges typically results in diminished immediate selling pressure.
With sentiment gradually shifting back to a bullish outlook, this type of liquidity reduction can quickly amplify market movements. When supply contracts and demand rises simultaneously, price changes can occur more rapidly than anticipated.
Key Takeaways
- Binance’s XRP reserves have fallen to around 2.5 billion, marking the lowest level since early 2024.
- Since November 2024, nearly 700 million coins have left the exchange, indicating a potential transition to cold storage.
- Analysts view decreasing exchange balances as a traditional accumulation signal that alleviates selling pressure.
Is a Supply Shock on the Horizon?
The change is significant. In November 2024, Binance held about 3.2 billion XRP. Now, that figure is closer to 2.5 billion. This equates to roughly 700 million tokens removed, representing about 22% of the total stack eliminated from exchange wallets in just over a year.
Source: CryptoQuant
Analysts suggest that such a decline typically indicates tighter liquidity on the sell side. When coins exit exchanges, they frequently transition into self-custody. This is generally a long-term strategy, often employed by institutions and large investors when they are positioning rather than trading.
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The timing adds an intriguing element. This reserve depletion occurred shortly after Binance implemented full XRPL support for RLUSD. Many anticipated increased on-chain activity; however, XRP itself began to flow out instead.
Reduced supply on exchanges. Stronger price reactions. This combination is becoming increasingly difficult to disregard.
The Short Squeeze Scenario
The next developments hinge on funding rates. XRP funding recently reached 10-month lows, and historically, such resets have often preceded significant upward movements.
If short positions are becoming crowded while exchange supply continues to decline, a decisive break above $1.55 could trigger a rapid squeeze towards $1.80.
Xrp (XRP)24h7d30d1yAll time
This setup is also bolstered by improving regulatory sentiment, particularly with Ripple’s leadership gaining increased visibility in Washington.
For the moment, $1.45 is the critical level to monitor. If the price remains stable there while reserves keep decreasing, this would provide the kind of confirmation that bullish traders seek before targeting new highs.
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