BULLISH 📈 : XRP Reserves Drop as Accumulation Phase Signals Potential Price Rebound
The XRP price is under pressure, despite a 5.7% increase on Friday following a 7.1% loss earlier in the week. An on-chain analysis indicates potential accumulation, which might lead to increased market demand and recovery.
XRP Exchange Reserves at 2024 Lows
Pseudonymous analyst CryptoOnchain reports a significant drop in XRP reserves on Binance, reaching lows of 2.5 billion XRP, compared to a peak of 3.2 billion in November 2024. This suggests over 700 million XRP have been withdrawn from the exchange in 15 months, indicating reduced sell-side liquidity as investors hold onto their assets.
Declining Reserves as an Accumulation Signal
CryptoOnchain suggests that decreasing exchange reserves might indicate upcoming accumulation, reflecting investors' reluctance to sell. This trend implies a possible shift towards long-term growth, as assets are moved to cold storage. A supply shock could ensue if demand rebounds, potentially leading to notable price gains for XRP, currently valued at $1.40 with a 3.07% increase in the past 24 hours.
