Binance’s XRP reserve is currently around 2.57B XRP. Both the SMA(50) and SMA(100) are sloping downward. The spot reserve has clearly been in a declining trend recently. Although there are small short-term upward reactions, the overall direction remains downward.
➡️ XRP is being withdrawn from exchanges.
➡️ Sell side ready supply is decreasing.
➡️ Spot market liquidity is tightening.
Technically, this structure signals a supply squeeze. The price is currently around $1.4. After a sharp decline, it is trading near a bottom region. What’s important is that the price has fallen while reserves have also been declining. Normally, a drop in exchange reserves is considered positive for price. However, the price is still down. This suggests that while spot supply is decreasing, derivatives pressure has been stronger.
In other words, the selling pressure is not coming from the spot market. It is more likely driven by leveraged positioning and risk off behavior in the market, with XRP being withdrawn to private wallets.
If reserves continue to fall but demand does not return, the price may continue its downward trend until it finds a clear accumulation zone. Considering that Binance is the primary venue for whales and institutional participants, the fact that these reserve outflows have not yet impacted price is a notable development.
In summary, reserves are declining while price remains near the lows. This structure increases the probability of a potential short squeeze scenario ahead.
Written by PelinayPA
