XRP’s Pivotal Moment: Navigating a Critical Demand Zone

XRP‘s market position has been under strain recently, with its price revisiting a significant demand region below $1.90. Attempts at upward momentum have been fleeting, reflecting the current market structure’s vulnerability. At the same time, a crucial development involves the declining XRP reserves on Binance, which have plummeted to their lowest point in six months. This contrast between weakening technical indicators and on-chain data presents a puzzle over the future course of selling pressure.

Why Are Binance Reserves Dwindling?

According to insights from CryptoQuant, XRP reserves on Binance have decreased significantly, reaching about 2.66 billion units. This marks the lowest level since July 2024. Such movements suggest that more XRP is being moved from exchanges into more secure storage, leading to less liquid supply available for trading.

Historically, such declines in exchange reserves have often preceded periods of stability or even price upswings. A diminished supply ready for trading can magnify the impact of even modest buying interest, occasionally sparking recoveries amid prevailing market downturns.

What Lies Ahead for XRP’s Price?

Currently, XRP is trading close to $1.87, testing the robust demand zone between $1.80 and $1.90. This zone has previously supported a broader bullish trend. Indicators, like the Relative Strength Index, hover near lower levels, hinting at reduced selling pressure. Nonetheless, signs of a trend reversal remain elusive.

On a broader scale, weekly charts depict a downtrend since the last high between $3.40 and $3.60, with successive lower highs and lows. The short-term weekly moving average has shifted downward, now marking the $2.40–$2.60 band as strong resistance. Despite the price remaining above long-term averages, recent momentum losses have weakened the medium-to-long-term outlook.

• Support Bounce: Maintaining weekly closings above the $1.80–$1.90 range may bolster expectations of a robust short-term recovery.
• Risk of Decline: Breaching the $1.80 mark could lead to further price drops, potentially toward $1.50.
• Recovery Zone: Sustaining a base above the $2.20–$2.40 zone could open avenues for a gradual recovery from recent weaknesses.

Current trends in trading volume suggest the market is being shaped more by seller exhaustion than by fresh buying. The ongoing convergence of technical pressures and reduced supply points to a critical juncture for XRP. Decisions made here could significantly influence the currency’s near-term trajectory.

CryptoQuant analyst CryptoOnchain stated, “It’s a critical moment for XRP, where technical and on-chain data seem to collide in unexpected ways.”