XRP Binance Reserves Fall Amid Heavy Liquidations

| medium.com
Binance XRP reserves have fallen by about 551 million tokens, from 3.166 billion in November 2025 to 2.615 billion on 1 September 2026. The 17.4% decline brings reserves close to levels last seen in February 2024. XRP Binance reserves have decreased even as the token remains under pressure, falling from a peak near $3.66 to about $1.30–$1.35, a drop of roughly 63%. XRP was trading near $1.33 on 2 September, down 27.68% year to date but up 27.74% over 30 days. Possible explanations for the falling XRP exchange reserves include transfers to self-custody, long-term accumulation, demand linked to US spot XRP ETFs launched in late 2025, and Binance wallet rebalancing. However, exchange outflows do not conclusively prove accumulation. Short-term conditions remain weak: XRP fell 1.76% over four hours, 4.54% over 24 hours and 7.73% over seven days. About $11.21 million in XRP positions were liquidated in 24 hours, including $10.63 million in long positions. The decline in XRP Binance reserves may support a longer-term supply-contraction thesis, but heavy long liquidations show that leverage and sentiment continue to drive near-term price action. Traders should not treat lower exchange reserves as an immediate breakout signal.
Neutral
The news presents opposing signals for XRP. Falling Binance XRP reserves reduce the amount of immediately available exchange supply and may reflect self-custody or longer-term accumulation. Demand associated with US spot XRP ETFs could strengthen that bullish interpretation over time. However, the data does not prove that coins are being accumulated, as outflows can also result from wallet rebalancing or other operational transfers. In the short term, XRP remains well below its peak, has posted recent losses and recorded about $11.21 million in liquidations, most of them from leveraged long positions. This suggests weak sentiment and continued downside risk if traders unwind positions. Historically, exchange outflows can support prices when accompanied by sustained spot demand, but they rarely trigger an immediate rally on their own. The mixed supply and momentum signals therefore justify a neutral classification for XRP, with a potentially constructive long-term backdrop but unstable short-term trading conditions.