XRP (CRYPTO: XRP) has dropped around 13% over the past month even as Binance’s XRP reserves dropped to their lowest level since February.
Binance XRP Reserves Stabilize Near 2.61 Billion
In an X post on July 15, CryptoQuant data shows that Binance’s XRP reserves fell to roughly 2.61 billion tokens at the start of July before stabilizing near that level.
The decline extends a broader drop in XRP held on the world’s largest cryptocurrency exchange, with no major inflows replenishing reserves.
Lower exchange reserves often suggest investors are moving tokens into private wallets, reducing the amount immediately available for sale.
However, XRP’s price continued to decline during the same period, showing that falling reserves alone have not been enough to reverse bearish momentum.
XRP trades near $1.10 as weak liquidity, muted trading volume and cautious investor sentiment outweigh the potential supply-side boost from lower Binance reserves.
If exchange balances continue to decline while demand improves, the reduced available supply could ease selling pressure over the medium term.
Monthly Buy Signal Appears
Crypto chart analyst Ali Martinez said XRP has flashed a monthly TD Sequential buy signal.
The indicator attempts to identify potential trend exhaustion and reversal points after a prolonged move in one direction.
The signal adds to the case that XRP may be approaching a technical bottom, but bulls still need stronger demand and trading volume to confirm a sustained recovery.
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