XRP’s price action remains structurally bearish, but the downward momentum looks like it’s losing steam — and on-chain data helps explain why. In a QuickTake post on CryptoQuant, analytics group Arab Chain highlighted a notable shift in liquidity on the XRP Ledger by tracking the Exchange Reserve metric for Binance (the total XRP held in wallets tied to the centralized exchange). Binance’s XRP reserves have fallen to roughly 2.6 billion XRP — the lowest level seen since 2024. That drop typically means tokens are moving off exchanges into personal wallets — either for long-term holding or other on-chain uses — rather than sitting ready to be sold. Arab Chain argues this steady contraction points to a market that’s rebalancing supply away from day-to-day trading. When coins leave exchange custody, they’re less likely to be liquidated in a hurry, which can ease bearish pressure. The group also notes the decline followed prior sharp inflows to exchanges, suggesting the market isn’t simply dumping but adjusting where XRP is stored. That dynamic puts XRP in a “delicately bullish” position: if buyers return, the reduced float on exchanges could help amplify upside movements. Conversely, continued low reserves make large-scale sell-offs less likely in the short term — but they don’t eliminate downside risk entirely. Price context: for most of December XRP traded between $2.123 and $2.000. Popular analyst Ali Martinez warned on X that XRP needs to hold above $2.00 for a realistic recovery; failing that, he said the token could slide toward $1.20. At the time of writing, CoinMarketCap reports XRP trading around $2.02, up 0.64% over the past 24 hours. Bottom line: on-chain reserve data suggests growing accumulation and a thinner exchange float, which can reduce immediate liquidation risks and set the stage for sharper rallies if demand returns — but price must clear key levels (notably $2.00) to confirm a sustainable recovery. Read more AI-generated news on: undefined/news

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