XRP Exchange Reserves Surge: Is a Price Decline Looming?

• Binance has seen an increase of 135 million XRP, valued at $72.63 million, over the course of a week.
• Given the current market trends and bearish signals, XRP’s price could potentially drop to the $0.48 mark.

Ripple [XRP] is experiencing a possible price drop amid shifts in trader sentiment and significant sell-offs by whales. Similarly, major cryptocurrencies like Bitcoin [BTC], Ethereum [ETH], and Solana [SOL] are also witnessing considerable price declines.

XRP exchange reserves on the rise

Data from on-chain analytics firm CryptoQuant indicates that large investors and institutions are continuing to transfer their XRP holdings to cryptocurrency exchanges.

The data reveals that Binance’s reserves have risen by 135 million XRP, equivalent to $72.63 million, over a week’s time. This notable increase in exchange reserves typically signals a bearish outlook for XRP holders.

Source: CryptoQuant

Whales and institutions typically move their holdings to exchanges for either staking or selling purposes. Recently, an impressive 49.6 million tokens have also been transferred to Bitso and Bitstamp by large investors within the last 24 hours.

What’s causing XRP’s decline?

One of the key reasons behind this large-scale XRP selling could be attributed to the recent appeal by the U.S. Securities and Exchange Commission (SEC) in the Ripple case, along with escalating tensions between Iran and Israel.

As of the latest update, XRP was trading close to $0.52 and witnessed a price increase of 2.7% over the previous 24 hours.

In the same timeframe, trading volume has dropped by 50%, reflecting a decline in market participation from traders and investors, likely due to the fear of further price downturns.

XRP technical analysis and future levels

AMBCrypto’s technical analysis suggests that XRP is exhibiting bearish tendencies since it has breached the critical support level of $0.553 and is trading below the 200 Exponential Moving Average (EMA) on a daily chart.

Source: TradingView

Given the current price trends, it seems highly likely that XRP could approach the $0.48 level in the near term.

This pessimistic perspective is reinforced by on-chain data. As reported by the analytics firm Coinglass, XRP’s long/short ratio is currently at 0.94, indicating a strong bearish sentiment among traders.

Source: Coinglass

Read XRP’s Price Prediction 2024–2025

Moreover, its future open interest has fallen by 2.3% within the last 24 hours, indicating that traders are either closing out their positions or are reluctant to enter new ones amid market instability.

Considering these on-chain metrics, technical assessments, and whale movements, it appears that bearish pressure is currently prevailing over the asset, which may lead to further price decreases in the upcoming days.