WILL XRP INVESTORS END THEIR WAITING PERIOD BY BUYING OR SELLING?
First of all, the Exchange Reserve metric shows the total amount of XRP held in Binance wallets. Since Binance is an exchange heavily populated by institutional investors and whales, a decrease in reserves generally indicates that investors are withdrawing their XRP from the exchange and holding it long-term, while an increase in reserves indicates that they are bringing XRP to the exchange for sale.
Binance reserves have been on a downward trend in recent months. Binance reserves have decreased from approximately 2.8 billion XRP to 2.69 billion XRP. This indicates that investors are withdrawing their XRP from the exchange, the desire to sell has decreased, and whales, in particular, are inclined to hold onto it. Therefore, it can be said that selling pressure is lower than it will be in mid-2025.
As reserves fall, so does the price. This suggests that while institutional investors are accumulating, small investors are inclined to sell. This is because liquidations have decreased on both sides recently. So, since both long and short liquidations have been cleared, it means the spot market is primarily causing the price drop.
The MFI is currently around 43. This shows that the price is neither in the oversold nor overbought zone. In other words, there is neither strong fear nor strong greed in the market right now.
If the selling pressure gives way to buying pressure while reserves are falling, an increase could be seen. Looking at this chart, it seems that a large portion of XRP investors are inclined to wait. Therefore, every sell-off is pushing the price down. I think we are currently experiencing a correction of the decline. For the decline to end, the price needs to break above $1.2 in the short term and above $1.62 in the medium-to-long term. We can only see this when buying increases.