XRP Binance reserves hit 5-month low as accumulation signals emerge

XRP exchange supply is shrinking even as the token struggles to break above $1.15 resistance.

XRP rose 3.5% to $1.10 as Binance reserves dropped to 2.61 billion tokens, the lowest level in five months, according to CryptoQuant.

"Binance's XRP holdings have fallen to roughly 2.61 billion tokens, the lowest level in six months, with meaningful inflows yet to refill reserves since early July," Arab Chain, a contributor at CryptoQuant, said.

The decline in exchange supply — typically a bullish signal suggesting accumulation — coincided with XRP sliding toward $1.06 before buyers returned. The Binance CVD Confirmation Score remains at negative 6.93 million, indicating sellers have controlled order flow since XRP traded above $2.00 earlier this year.

The $1.06 to $1.07 zone has continued attracting buyers, while resistance between $1.12 and $1.15 has repeatedly stalled rallies. A convincing break above $1.15 could extend momentum toward $1.30 to $1.40, while a daily close below $1.06 would expose the $0.95 to $1.00 area.

The reserve drawdown comes as Binance's ERC-20 stablecoin reserves climbed to about 46.3 billion, their highest level since early February, after rebounding by roughly $5 billion from the cycle low. The recovery suggests fresh fiat-linked liquidity is moving back onto the exchange, often seen as a precursor to increased buying activity.

XRP liquidity on Binance has fallen to its lowest level since 2021, with the liquidity index dropping to about 0.053 and 30-day trading volume sliding to roughly 3.77 billion XRP, according to CryptoQuant. Such low-liquidity phases often precede larger price moves once volume and participation begin to recover.

Long-Term Holders Accumulate Through the Downtrend

Glassnode data show XRP's long-term holders have been in a steady accumulation phase since January 2026. The Hodler Net Position Change metric has remained mostly positive for months, with net additions often holding in the 200 million to 300 million XRP range even as XRP traded near $1.30. That marks a shift from the heavy distribution seen through much of mid-to-late 2025.

The broader macro environment has also supported risk assets. The June Consumer Price Index came in cooler than expected, lowering odds that the Federal Reserve would raise rates at its July meeting, according to the CME FedWatch tool. Bitcoin rose 3.5% to $64,752, while Ethereum gained 4.7% to $1,876, lifting the broader crypto market.

Despite the recent recovery, XRP still trades about 70% below its all-time high near $3.65.

This article is for informational purposes only and does not constitute investment advice.