As a prominent development in the cryptocurrency market, there has been a notable decrease in Binance’s XRP reserves since the beginning of the year. According to records, the amount of XRP held by the exchange has dropped to this low level for the first time since the beginning of 2024. Immediately after this development, a rapid increase was observed in the price of XRP and its value increased by 4.5 percent and approached the level of $ 1.50.
The Remarkable Decline in XRP Reserves
Data from blockchain analysis companies shows that Binance has approximately 2.5 billion XRP left in its wallets. This amount means the lowest reserve level observed for the stock market in recent times. The fact that there is less XRP on the exchange for trading indicates that the selling pressure has eased in the short term.
Liquidity Contraction and Demand Dynamics
In November 2024, Binance held a total of 3.2 billion XRP. Today, this figure has decreased to 2.5 billion; Approximately 700 million XRPs were moved off the exchange within a year. According to experts, coins withdrawn from exchanges usually mean that they are transferred to users’ own wallets or cold storage. This is often considered a strategy preferred by long-term investors or corporate actors whose sales are not considered in the near term.
The timing of this decline in reserves is also noteworthy. After Binance provided full support to the XRP Ledger ecosystem, XRP’s exit from the stock exchange accelerated. While market expectations increase in activity in transactions, the prominent withdrawal from the stock exchange on the XRP side points to a new dynamic in the market.
It is observed that as supply decreases on trading platforms and market sentiment turns upward, price movements accelerate. With the decrease in the amount of XRP seen on the stock exchanges as a result of recent developments, rapid reactions in prices have become possible.
Short and Medium Term Scenarios
With the funding rates in XRP futures falling to their lowest levels in the last ten months, it is indicated that short positions have intensified. Historically, upward movements in prices have been observed under similar conditions. If short selling transactions continue to accumulate and stock market reserves continue to decrease, a strong price movement towards $1.80 may occur if the $1.55 level is exceeded.
The critical level that investors are watching in the near term is shown as $ 1.45. If the price holds at this level and reserves continue to remain low, this may create an environment where buyers can dominate the market again.
Ripple’s increased visibility in legal processes in Washington also supports positive expectations on the regulatory side. The company’s strengthening of relations with regulatory authorities in the USA has a positive impact on market perception.
Latest data reveals that Binance’s XRP reserves have decreased significantly in the last year, which stands out as a factor that can affect both the supply-demand balance and short-term price movements.
