Binance XRP Reserves Drop to 2024 Lows as Traders Eye Accumulation Signal

Core Insights - Binance reserves have decreased to approximately 2.5 billion XRP, the lowest level since early 2024, indicating a significant liquidity drain [1][8] - The reduction of around 700 million XRP, or 22% of the total reserves, suggests a tightening of sell-side liquidity, which could lead to upward price movements [4][5] - The current market sentiment is turning bullish, and the combination of reduced supply and increased demand could accelerate price increases [2][6] Supply Dynamics - The drop in Binance's XRP reserves from 3.2 billion in November 2024 to 2.5 billion now indicates a substantial outflow of tokens from exchange wallets [4][8] - Analysts suggest that this outflow typically signals a shift towards self-custody, often associated with long-term positioning by institutions and large investors [5] Price Movement Potential - XRP funding rates have recently reached 10-month lows, historically a precursor to significant price increases [7] - If the price breaks above $1.55 while exchange supply continues to decline, it could trigger a short squeeze, potentially pushing prices towards $1.80 [7] - The key price level to monitor is $1.45; maintaining this level while reserves fall could confirm bullish momentum [8]