XRP Reserves on Binance Fall to Their Lowest Level in Years
Binance has been holding far less XRP since November, while derivatives are still leaning toward short covering. The $1.20 area remains the market’s next test.
Key Takeaways
- The Binance Scarcity Index for XRP climbed to 0.77, its highest reading in more than two years.
- Binance has held about 20 percent less XRP since November 2024, with reserves falling from 3.27 billion to around 2.6 billion.
- XRP is trading near $1.13, while $1.20 remains the next major technical resistance.
XRP is back in focus after the Binance Scarcity Index rose to 0.77, its highest level in more than two years. At the same time, the token is changing hands around $1.13 (€0.99), while Binance’s XRP balance keeps sliding lower. For the broader crypto market, that suggests less XRP available to sell on the largest crypto exchange for the asset, even though the next move will still come down to demand.
Supply on Binance Shrinks
According to CryptoQuant analyst ArabxChain, the index tracks how scarce XRP is on Binance compared with earlier periods. A higher reading means fewer coins are sitting on the exchange and ready to be sold, which usually points to lighter immediate selling pressure.
The data shows that Binance has held roughly 20 percent less XRP since November 2024. Reserves dropped from about 3.27 billion XRP to around 2.6 billion, a decline of roughly 650 million coins. The pace of that decline also picked up in recent weeks, with holdings falling from about 2.8 billion in May to 2.6 billion in early July.
CryptoQuant views the index as a useful gauge of XRP availability on Binance. In past market cycles, similar moves have often come before sharp price swings, although the indicator on its own does not point to a specific direction.
Shorts Took the Hit
The drop in supply lines up with a shift in derivatives trading. Coinglass data shows that the open interest-weighted funding rate stayed mostly positive in May, even as XRP slid from above $1.45 (€1.27). In that stretch, long positions absorbed the pressure while the token kept weakening.
That setup changed in June. Negative funding built up as XRP moved toward $1 (€0.88), with the deepest negative readings coming between June 26 and 28. That suggests traders were leaning hard into short bets just as the market was already under heavy stress. The rebound to $1.13 (€0.99) therefore looks more like short covering than a clear wave of fresh spot buying.
The $1.20 (€1.05) level still matters here. It capped the mid-June bounce and now stands as the next hurdle for bulls. A daily close above that area would open the door to the $1.35 (€1.18) to $1.40 (€1.23) range, while a move back below $1 (€0.88) would put the recovery setup under pressure again.
Why This Matters for Europe
For European crypto watchers, the setup matters because it shows how exchange reserves and derivatives positioning can shape the outlook for a major altcoin. XRP is still one of the market’s most closely watched tokens, so changes on Binance tend to get a lot of attention from traders and analysts. That makes the combination of shrinking reserves and a tight technical range around $1.20 (€1.05) especially important over the next few trading days. Binance is also facing broader pressure in Europe, where the exchange recently ran into tensions with MiCA regulators and had to adjust its European strategy.
