Binance’s XRP reserves have fallen to about 2.61 billion tokens, their lowest level since February, and the balance has held there since the start of July.

And even though the Ripple token had been sliding toward $1.06 while those reserves were draining out, it reversed course in the last 24 hours, gaining over 3% in that period.

Exchange Reserves Shrink as Selling Pressure Lingers

According to CryptoQuant contributor Arab Chain, there have been no meaningful inflows to replenish Binance’s XRP stockpile in recent months, which is why the reserve figure has held near its February 2026 low instead of climbing back.

A falling exchange balance can be considered a bullish signal since it is often taken to mean that investors are moving their stash into private wallets instead of preparing to sell. That signal took a while to show up in price, with Arab Chain noting that XRP had been falling to around $1.06 while reserves were emptying out, suggesting that liquidity, trading activity and investor sentiment were outweighing the effect of declining exchange supply.

In another market update, the same analysts pointed to the Binance CVD Confirmation Score, which blends price with Cumulative Volume Delta to track whether buy or sell orders are winning out in the spot market. That CVD reading is at -6.93 million, meaning that sell orders have outweighed buys as XRP fell from above $2.00 earlier this year toward the $1.07 area.

Meanwhile, the 30-day Price-CVD Confirmation Score is holding near 0.84, a figure Arab Chain says, while reasonably healthy, still falls short of confirming a genuine shift in buying demand. According to them, only a sustained move into positive CVD territory alongside a stronger confirmation score would point to a real reversal in buying interest.

As noted earlier, XRP’s price action has nevertheless improved modestly, with data from CoinGecko at the time of writing showing the asset trading around $1.11 after gaining about 3.7% in 24 hours, having oscillated between $1.07 and $1.12 during that period. However, the world’s sixth-largest cryptocurrency by market cap is still down 7% over the past month and more than 61% across one year, despite daily trading volume jumping 31% higher than the previous day to hit $1.26 billion.

Analysts Divided On Where XRP Heads Next

Such is the state of XRP that market watchers are split on what comes next. For example, popular trader Diana has pointed to $1.08 as the level to watch and warned that losing it could send XRP toward the $0.90-$0.93 zone before one last flush to the $0.87 macro support. Fellow analyst CasiTrades holds a similar technical view but frames it as the tail end of a yearlong correction, telling followers on X that a drop toward $0.87 would “finish off the correction we’ve spent the last year building.”

But others are looking past the near-term chop, with one of them, Crypto Patel, arguing that XRP is tracing a pattern that has historically come right before rallies of more than 1,000%. On his part, crypto investor Celal Kucuker pointed to a 500% monthly gain two years ago as a reason not to dismiss $7 by the end of the year.

Source: CryptoPotato