XRP Price Recovery and Market Context
XRP spent most of this week fighting to reclaim momentum, and the market finally gave it some breathing room. After dipping below the $2 mark earlier in the week, the XRP price managed to bounce back above $2.20. That recovery mirrors the broader altcoin market, where several large-cap assets saw similar rebounds after a shaky start to the week. For XRP, holding above the $2 level is still an important psychological line, and this bounce shows there is demand waiting below the surface.
Declining XRP Reserves on Binance
The more interesting story, however, is unfolding off the chart; on Binance’s reserves. New data shows that Binance’s XRP balance has fallen to around 2.7 billion tokens, one of the lowest levels ever recorded on the exchange. That number previously hovered around 3 billion XRP, but steady withdrawals have pulled it sharply down in November. The chart visualizes the decline clearly: a smooth but persistent trend of users removing XRP from the exchange while price action moves in wide swings.
Implications of Reserve Decline
This kind of drop in reserves typically signals one of two things. Either long-term holders are moving tokens into self-custody, or traders are positioning for something by getting assets off centralized venues. Both scenarios reflect reduced sell-side pressure. When fewer tokens sit on exchanges, it becomes harder for large sell orders to push the price down, and that often sets the stage for tighter supply during the next wave of volatility.
Investor Behavior and Sentiment Shift
It’s also notable that the reserve drop comes during a period of price stabilization for XRP. The asset is not rallying aggressively yet, but the reserve trend shows investors are acting decisively behind the scenes. Historically, similar reserve declines have aligned with accumulation phases. The combination of a price recovery above $2.20 and shrinking exchange supply suggests that sentiment may be shifting cautiously toward strength.
Potential for a Supply Squeeze
If this pattern continues through the coming weeks, XRP could face a classic supply squeeze setup. Exchange outflows do not guarantee a breakout, but they often reduce downward pressure and give bulls more room to build momentum. With reserves at one of their lowest points and price stabilizing near local support, the next significant move may depend on whether demand can pick up again as supply tightens.
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