XRP, Exchange Supply Disappearing..."Selling Forces at Risk if There's Demand"

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

Binance's XRP holdings peaked at approximately 3.05 billion in mid-2025 and continued to decline. At that time, the XRP price was in the $3.50 range, and both holdings and price plummeted until early 2026. Holdings dropped to approximately 2.55 billion, and the price fell 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. XRP held on centralized exchanges is sellable supply that can immediately appear on order books, but XRP moved to personal 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 added that the regulatory environment, where the US cryptocurrency market structure bill is being discussed, cannot be easily separated from the accumulation movements of XRP ecosystem participants.

However, it was also suggested that the decrease in Binance's holdings alone cannot be seen as XRP having already entered a bullish reversal. Bitcoinist stated that if demand picks up again in a situation where exchange liquidity continues to thin out, it could burden selling forces, but the price must 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.*