XRP, Exchange Supply Vanishing..."Selling Forces at Risk with Demand Alone"

▲ XRP

While XRP has not fully escaped its bearish trend, Binance's holdings are rapidly decreasing, and the reduction in sellable supply has emerged as a variable for a price reversal.

According to the cryptocurrency specialized media Bitcoinist on May 5 (local time), CryptoQuant's on-chain data shows that Binance's XRP holdings decreased from approximately 3.05 billion units to around 2.75 billion units in less than a year. At the time of writing, the XRP price was stated to be approximately $1.38.

Binance's XRP holdings peaked at approximately 3.05 billion units in mid-2025 and have continued to decline since then. At that time, the XRP price was in the $3.50 range, and both holdings and price sharply dropped together until early 2026. Holdings fell to around 2.55 billion units, and the price was pushed down to around $1.25.

Bitcoinist explained that a decrease in exchange holdings, if it occurs during a bearish price period, can be interpreted as a constructive signal. This is because XRP on centralized exchanges is readily available for sale on order books, while XRP moved to private wallets is removed from that sellable pool.

The decrease in exchange holdings also coincided with increased institutional interest. The XRP spot ETF recorded a net inflow of $81.59 million in April, marking its highest monthly figure this year. Bitcoinist reported that the regulatory environment, where the US cryptocurrency market structure bill is being discussed, cannot be viewed separately from the accumulation movements of XRP ecosystem participants.

However, it was also pointed out that a decrease in Binance holdings alone does not necessarily mean XRP has already entered a bullish reversal. Bitcoinist stated that while renewed demand in a situation where exchange liquidity continues to thin out could burden selling forces, the price needs to prove that reduced exchange supply can lead to stronger demand.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*