XRP Holds Above $1.10 as Exchange Supply Continues to Tighten
A steady decline in XRP held on major exchanges has shifted attention from short-term price action to whether tightening available supply could support the token if demand begins to recover.
Summary:
- Binance’s XRP reserves have stabilized near their lowest level since February after a two-month decline.
- Exchange balances have also fallen on other trading platforms, suggesting the trend extends beyond Binance.
- XRP has yet to respond decisively, as subdued trading activity and mixed institutional flows continue limiting upside momentum.
- Traders remain focused on whether improving demand can combine with shrinking exchange supply to produce a sustained breakout.
Binance’s XRP Reserves Hold Near Multi-Month Lows
According to data from CryptoQuant, Binance’s XRP reserves have stabilized at roughly 2.61 billion tokens, their lowest level since February, after declining more than 6% from mid-May levels. The reduction follows a broader withdrawal trend across major exchanges, with Upbit also recording lower XRP balances over the same period.
Lower exchange reserves are generally viewed as a sign that investors are moving assets into private wallets rather than preparing to sell them, reducing the amount of XRP immediately available for trading. While that can tighten supply, analysts caution that reserve data alone rarely determines price direction without stronger buying demand.
Supply Is Tightening, But Demand Remains Mixed
The decline in exchange balances has yet to translate into a sustained rally.
XRP spent much of recent weeks consolidating around the $1.00-$1.10 range despite the shrinking supply on exchanges. On-chain activity has softened, with active wallet addresses falling toward yearly lows, while institutional positioning has remained mixed following intermittent outflows from U.S. spot XRP investment products.
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Market participants also note that part of the recent recovery appears to have been driven by short covering rather than broad spot accumulation, suggesting buyers have yet to fully regain control.
Technical Picture Improves Gradually
XRP has begun showing tentative signs of stabilization after breaking above a descending trendline that had capped price action for weeks.
Technical Snapshot
- Price: ~$1.11
- 24-hour change: +0.3%
- RSI: 57.8, moving above its signal line.
Price trades above the 20, 50 and 100-period moving averages, while remaining just below the 200-period average near $1.11, which continues to act as immediate resistance.
A daily close above $1.18 could expose upside targets around $1.26 and $1.51-$1.57, while a sustained move back below $1.00 would weaken the current recovery structure.
Derivatives Signal Cautious Optimism
According to data from Coinglass, XRP derivatives positioning continues to expand, indicating traders are adding exposure as the token attempts to strengthen its recovery.
Open Interest Snapshot
Total open interest: 2.21 billion XRP (≈ $2.46 billion)
- 1-hour change: +0.37%
- 4-hour change: +0.15%
- 24-hour change: +2.16%
The steady increase in open interest alongside XRP’s recent price recovery suggests fresh positions are entering the market rather than existing contracts being closed. While rising open interest often reflects growing conviction among traders, it also increases the potential for sharper volatility if momentum reverses, making price action around key resistance levels particularly important.
Fundamentals Could Shape the Next Move
Beyond technicals, investors continue monitoring Ripple’s broader ecosystem developments.
The company is advancing the rollout of its RLUSD stablecoin, where XRP is expected to play a bridging role across payment flows.
While the initiative does not directly determine XRP’s price, broader adoption of Ripple’s payment infrastructure could strengthen long-term utility for the asset.
For now, shrinking exchange reserves indicate fewer tokens are readily available for sale, but whether that develops into a sustained rally will largely depend on renewed capital inflows, improving trading activity and greater institutional participation rather than supply dynamics alone.
The information presented in this article is intended for informational purposes only and should not be interpreted as financial, investment, or trading advice. Coinspress.com does not promote or advocate for any particular investment strategy, asset, or cryptocurrency project. Cryptocurrency markets are highly volatile and unpredictable – always perform your own research and seek guidance from a qualified financial professional before making any investment decisions.
Kosta Gushterov
Reporter at CoinsPress
Kosta has reported on cryptocurrency markets and blockchain infrastructure since 2020, bringing over six years of hands-on experience in the crypto industry built through daily tracking of markets, trends, and emerging blockchain developments. Specializing in Bitcoin on-chain analysis, institutional ETF flows, and digital asset price action, his work has been cited by other news agencies and consistently covers market developments with a focus on data-driven reporting across Bitcoin, Ethereum, Solana, and XRP. Over the years, Kosta has contributed to multiple crypto media outlets in different regions, authoring over 6,000 articles across the sector. His reporting spans cryptocurrency markets and the broader fintech industry, tracking not only price action but also the technological and regulatory forces shaping the ecosystem. To support his analysis, Kosta actively leverages on-chain data and metrics from leading platforms such as Santiment, Glassnode, and CryptoQuant, enabling deeper, evidence-based market insights. He believes in the power of transparency and the data that underpins the blockchain ecosystem. His academic background in Marketing Management from Denmark further complements his analytical approach, adding a strong understanding of communication strategy and content positioning to his work.
