Binance Withdraws ~700M XRP; Exchange Reserves Hit 2024 Low, Tightening Liquidity
Binance’s XRP reserves have fallen to roughly 2.5–2.6 billion tokens — the lowest level of 2024 — after about 700 million XRP left the exchange since November 2024. The outflows coincided with a rapid price move (up ~4–4.5%) toward the $1.45–$1.50 area. On-chain data suggest tokens moved to private or cold wallets, removing supply from exchange order books and reducing immediate sell pressure. XRP perpetual futures funding rates have dropped to multi-month lows, signaling increased short interest that historically can precede sharp moves when buying returns. Technical levels traders should watch are near-term support around $1.45, a breakout threshold near $1.55, and a next upside target at $1.80 if momentum continues. Analysts note that a smaller exchange float increases sensitivity to inflows — raising the potential for amplified rallies — while sustained low reserves reduce the likelihood of large-scale sell-offs in the short term. Ripple’s ongoing engagement with US regulators is cited as a supportive sentiment factor. For traders, key actions are to monitor on-chain exchange reserve metrics, funding rates, and the $1.45–$1.55 price band for short-term entries and risk management. This is market commentary, not investment advice.
Bullish
The net effect of large on-exchange outflows is structurally bullish for XRP price pressure because fewer tokens on exchange reduce immediate selling liquidity and make the market more sensitive to buy-side flows. The articles report about 700M XRP leaving Binance, dropping reserves to a 2024 low; concurrently funding rates hit multi-month lows (increased short interest), and price rose ~4–4.5% toward $1.45–$1.50. In the short term this creates conditions for amplified rallies if buying resumes (smaller float + low funding rates can trigger short squeezes). Key short-term drivers include on-chain exchange reserve metrics, funding rate shifts, and price holds above $1.45–$1.55; a failure to hold critical support would negate bullishness and could push prices lower. Over the medium to long term, sustained reserve declines and positive regulatory progress (Ripple–US engagement) would be constructive; if reserves return to exchanges or selling intensifies, the bullish edge would reverse. Overall, immediate price impact is likely bullish but remains contingent on subsequent flows and technical support.