XRP News: Binance Reserves Drop as Long-Term Buyers Accelerate Accumulation

XRP is drawing renewed attention after updated on-chain data revealed a sharp decline in exchange reserves. Binance’s XRP holdings have dropped to about 2.7 billion tokens, falling significantly from levels near 3 billion recorded in early October. The chart shows a steady downtrend in exchange balances alongside a period of prolonged price consolidation, reinforcing a shift in supply dynamics as long-term and institutional buyers continue to accumulate.

The data illustrates a clear pattern: as Binance reserves fell from 3 billion to just above 2.7 billion XRP, the price hovered around the $2.20 area, reflecting a stable but compressed trading range. Historically, extended consolidation phases combined with squeezes above key moving averages have set the stage for stronger directional moves in XRP. Recent data suggests that exchange balances are shrinking more quickly than short-term traders can replenish them, indicating that supply is being absorbed by holders less likely to reintroduce liquidity in the near term.

A notable detail highlighted is the rising participation from institutional channels. Spot XRP ETFs logged more than $21 million in inflows on Wednesday, adding to evidence of growing demand from professionally managed products. When exchange reserves fall while ETF inflows rise, it often reflects a redistribution of supply toward longer-term market participants.

This development matters because shrinking exchange balances and rising institutional inflows can influence liquidity, volatility and market behavior. When long-term holders absorb supply faster than exchanges can retain it, price conditions may become more sensitive to incremental demand. The ongoing contraction in XRP reserves on Binance highlights how structural shifts in supply distribution continue to shape expectations for one of the market’s most closely watched assets.

Source: CryptosRus