XRP is testing a crucial long-term demand zone below $1.90 as market conditions worsen across the altcoin sector. After failing to maintain upward momentum, the price action has become increasingly fragile, with buyers struggling to defend key support levels. The current structure shows growing weakness, raising concerns that the broader market may be entering a bearish phase that could lead to deeper declines for altcoins.
Despite the softening price, on-chain data presents a more complex picture. A recent CryptoQuant report highlights a sharp drop in XRP reserves on Binance, even as the price continues to correct. Historically, falling exchange balances mean fewer tokens are held on platforms where they can be easily sold, often indicating reduced selling pressure rather than aggressive distribution.
This divergence between price behavior and on-chain supply is particularly notable at current levels. While XRP’s chart suggests buyers are losing control in the short term, the drop in exchange reserves raises questions about how much selling pressure remains if the price falls further. In past market cycles, similar conditions have sometimes led to periods of stabilization or relief rallies, especially when overall sentiment becomes overly pessimistic.
As XRP hovers below $1.90, the coming sessions will be critical. Whether the shrinking exchange supply can counterbalance the weakening technicals will determine if XRP finds a base or continues to decline with the wider altcoin market.
### Exchange Reserves Hit Multi-Month Low as XRP Tests Key Demand Zone
On-chain data reveals a significant shift in XRP’s supply dynamics at a crucial moment for its price. According to the XRP Ledger Exchange Reserve chart, XRP balances held on Binance have fallen sharply to around 2.66 billion XRP. This is the lowest exchange balance since July 2024, marking a meaningful reduction in the amount of XRP readily available for sale.
Historically, such declines in exchange reserves are seen as a positive signal. They suggest that investors and larger holders are moving tokens off exchanges into private wallets, reducing immediate selling liquidity. When the available supply for trading shrinks, even modest demand can have a stronger impact on price, setting the stage for a potential supply-driven move.
This on-chain development is occurring as XRP trades at a technically sensitive level. The price is currently testing the major demand zone between $1.80 and $1.90, an area that has previously served as a foundation for a bullish structure. Momentum indicators add context, with the RSI in the lower range, suggesting bearish pressure may be easing, though a confirmed reversal has yet to appear.
The combination of declining exchange supply and strong technical support strengthens the possibility of stabilization or a rebound. If buyers successfully defend the $1.80 level, the reduced liquid supply could fuel a sharp recovery. However, a decisive break below this zone would undermine the bullish on-chain outlook and reopen downside risk.
### XRP Tests Long-Term Demand as Weekly Structure Weakens
XRP is trading near $1.87 on the weekly chart, continuing a prolonged correction that has eroded much of the bullish momentum from earlier in the cycle. After peaking above the $3.40–$3.60 region, the price has consistently formed lower highs and lower lows, confirming a clear shift toward a bearish medium- to long-term structure.
The recent weekly candles show sustained selling pressure with limited lower wicks, indicating weak buying interest at current levels. From a trend perspective, XRP has fallen below its key weekly moving averages.XRP is now trading well below the faster weekly moving average, which has turned downward and become resistance around the $2.40–$2.60 zone. The longer-term moving averages remain far below the current price, showing that while the broader uptrend from previous years is still technically in place, momentum has weakened significantly.
The $1.80–$1.90 area is a crucial demand zone. It has served as key support in the past and now represents the last important level bulls need to hold to prevent a deeper decline. A sustained weekly close below $1.80 would seriously damage the broader structure and open the door for a drop toward $1.50 or lower.
Selling pressure picked up during the drop from $2.50, while recent weeks have seen lower trading volume—suggesting exhaustion rather than accumulation. For XRP to recover, the price would need to climb back into the $2.20–$2.40 range and establish a foothold above what was once support and is now resistance.
Frequently Asked Questions
FAQs XRP Reserves on Binance at a 6Month Low
BeginnerLevel Questions
1 What are XRP reserves on an exchange like Binance
XRP reserves refer to the total amount of XRP tokens that Binance holds in its wallets to facilitate customer trading withdrawals and deposits Its the exchanges available supply of the asset
2 What does it mean that Binances XRP reserves have dropped to a 6month low
It means that the total amount of XRP held by Binance is now at its smallest quantity in the last halfyear This is often interpreted as more XRP being withdrawn from the exchange than being deposited
3 Why would lower reserves suggest selling pressure may be easing
Selling pressure typically happens when many holders want to sell their tokens on an exchange If reserves are dropping it could mean investors are moving their XRP off the exchangeperhaps to hold in private walletsrather than keeping it readily available to sell Less XRP on the exchange can mean fewer immediate sellers
4 Is this automatically good news for the XRP price
Not automatically but it can be a positive signal Reduced exchange reserves can indicate a decrease in immediate supply for sale which can help support or increase the price if demand remains steady or grows However price is influenced by many other factors like overall market sentiment news and adoption
Advanced Practical Questions
5 Could there be other reasons for the drop in reserves besides reduced selling pressure
Yes Other possibilities include
Increased staking or locking in DeFi protocols or on other platforms
Strategic accumulation by large investors moving funds to cold storage
Exchange operations like Binance rebalancing its own liquidity across different wallets or platforms
Preparation for use in payments or liquidity on other services
6 How can I track exchange reserves like this myself
You can use blockchain analytics platforms like Glassnode CryptoQuant or Santiment They provide metrics like Exchange Reserve and Exchange Netflow for major assets and exchanges
7 What is Exchange Netflow and how does it relate to this
Exchange Netflow measures