XRP Reserves on Binance Hit Record Lows Amid Price Stagnation
XRP Reserves Reach Critical Lows
The reserves of XRP on Binance have plummeted to a historic low since the beginning of 2024, as the cryptocurrency struggles to surpass the $1.50 threshold. Currently, Binance’s XRP holdings have decreased significantly to approximately 2.5 billion. This marks a sharp decline from the 3.2 billion XRP recorded in November 2024, reaching levels comparable to those of January 2024, according to the latest on-chain data from CryptoQuant as of February 16.
Advertisement Banner
Implications of Declining Exchange Reserves
Historically, a drop in exchange reserves often points to decreased immediate selling pressure, particularly when XRP is transferred to self-custodial wallets. This scenario is typically interpreted as an accumulation strategy by institutions and large-scale investors. A parallel trend was observed with Ethereum (ETH) earlier this month when its exchange reserves fell to a decade low, driven not by market volatility but by long-term holding patterns.
Impact of RLUSD Stablecoin on XRP Movement
The recent introduction of the RLUSD stablecoin support on the XRP Ledger (XRPL) by Binance appears to have catalyzed the current reserve decline. Contrary to expectations of heightened on-chain activity, the immediate consequence seems to be a significant outflow of XRP from the exchange.
XRP Price Struggles to Maintain Ground
In terms of pricing, XRP has experienced a decrease of nearly 6% over the last 24 hours, currently valued at $1.47, thus underperforming the broader cryptocurrency market. This decline follows a failure to break past the $1.53 resistance level, indicating a pivotal shift in momentum below the $1.50 mark. Technical indicators suggest potential for further depreciation, with the 14-day Relative Strength Index (RSI) at 41.82—above the oversold zone yet indicating bearish momentum.
Market Value and Trading Activity
Additionally, XRP’s market capitalization has plunged by over $11 billion in the past day, dropping from $101 billion to $89.31 billion. Despite the overall sluggishness of the cryptocurrency market, XRP’s sharp decline appears to have been exacerbated by significant selling activity on the Upbit exchange, where about $50 million worth of XRP was reportedly sold off.
Future Support and Resistance Levels
With XRP now trading at $1.47, the $1.50 region is likely to serve as a short-term resistance level. Conversely, the $1.40 level emerges as immediate support. A sustained breach below this support could pave the way for further losses, highlighting the precarious nature of XRP’s current market position.
