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ZyCrypto 2026-10-31 17:31:55

XRP Reserves on Binance Slump to 2022 Lows — Is a Supply-Shock Rocket Surge Imminent?

Could Ripple-linked XRP be sitting on the brink of a massive supply squeeze? Fresh on-chain data has revealed a striking development: XRP reserves on Binance have tumbled to their lowest level in nearly four years, with millions of tokens disappearing from the exchange’s holdings. The sudden drop is fueling speculation that a supply shock could be brewing, potentially setting the stage for an explosive price rally if investor demand returns. XRP Vanishes From Binance as Exchange Reserves Hit 4-Year Lows While the broader crypto market continues to battle persistent selling pressure and weeks of volatility, XRP is flashing a potentially bullish on-chain signal. Despite struggling to gain upward momentum amid the downturn, the token is seeing its exchange reserves shrink, suggesting that an increasing amount of XRP is moving off trading platforms. According to data shared by CryptoQuant analyst Amr Taha, XRP reserves on Binance plunged to 2.47 billion tokens on October 30, marking their lowest level since December 2022. Specifically, between October 28 and October 30, Binance’s XRP reserves fell from 2.69 billion to 2.47 billion tokens, representing a decrease of 220 million XRP, or approximately 8.18%, in just two days. The rapid drawdown has drawn attention to the remaining XRP on exchanges, raising questions about whether the trend could contribute to a potential supply squeeze if buying demand strengthens. Per Taha, the decline in XRP reserves extended beyond Binance to other major exchanges. On Bybit, holdings fell from 306 million XRP to 286 million, a decrease of 20 million tokens. Meanwhile, Bithumb’s reserves slipped from 1.847 billion XRP to 1.837 billion XRP, marking a reduction of 10 million tokens. Could XRP’s Supply Crunch Supercharge Its Price? The decline in XRP reserves across multiple exchanges could reduce the supply readily available for immediate trading, potentially supporting a price recovery if buying demand strengthens. However, outflows alone do not confirm accumulation, as investors may simply be moving tokens to private wallets or other platforms. For XRP bulls, the key question is whether declining exchange balances will coincide with a meaningful recovery in buying demand. If renewed investor interest meets a tighter supply of tokens available for sale, the combination could provide support for a strong price rally. Until then, the falling reserves remain an encouraging on-chain development for holders as XRP hovers around $1.25.

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