XRP is under intense selling pressure as the broader crypto market enters a decisive stage marked by fear, uncertainty and a rapid shift in investor sentiment. As Bitcoin struggles to recover and altcoins post steep losses, many analysts are warning that XRP could face a continued decline in the coming days. Investors are bracing for more volatility as liquidity dwindles and market confidence weakens.
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Yet despite the bearish rhetoric, the XRP ecosystem has shown unusual levels of activity, particularly on an institutional level. The arrival of the first American spot XRP ETFs has reshaped its market profile. Canary Capital was the first to launch on November 13, soon followed by Franklin Templeton, Bitwise and Grayscale. In a matter of days, XRP has transformed from a conventional crypto asset to one accessible through regulated institutional vehicles, potentially changing its long-term demand dynamics.
This new context makes an ongoing trend on Binance even more striking. Since October, XRP reserves on the stock market have decreased significantly. Current data shows that reserves have fallen to around 2.7 billion XRP, one of the lowest levels ever recorded on the platform. Such consistent outflows signal growing demand for self-custody – an important metric as XRP navigates this critical phase of the market.
XRP Exchange Outflows Signal Strengthening Long-Term Demand
According to a new CryptoQuant report from analyst Darkfost, XRP is experiencing one of its most notable exchange outflow trends in years. Since October 6, approximately 300 million XRP has been left at Binance, a figure far too large and too consistent to be considered a simple internal reshuffle. While a small portion of these transfers may be operational movements of the exchange, the larger trend is unmistakable: investors are steadily removing XRP from trading platforms.
This behavior is generally interpreted as a long-term bullish signal. Day by day, the decline in exchange reserves continues, suggesting that buyers are choosing to move their XRP into private wallets rather than leaving them on exchanges for short-term trading or speculation. Historically, large-scale withdrawals reflect high conviction, with holders positioning themselves for long-term appreciation rather than immediate selling.
The supply dynamics created by this trend are significant. With fewer tokens available on exchanges, liquidity is tightening. Combined with growing institutional interest in recently launched cash ETFs in the US, this creates the potential basis for a powerful shift in dynamics.
If foreign exchange reserves continue to decline at the current rate, XRP could enter a more structured accumulation phase, driven not by hype, but by the growing confidence of retail and institutional participants.
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XRP tries to stabilize but remains under strong selling pressure
The recent price action of XRP on the 3D chart shows an asset that is trying to stabilize, but still struggling in a clearly bearish context. After weeks of declines, XRP found temporary support near the psychological $2 zone, where buyers briefly stepped in to avoid a deeper breakdown. This area closely aligns with the 200-day moving average (red line), which has served as the last line of defense during several market cycles.
Despite the slight rebound, XRP continues to trade well below the 50-day and 100-day moving averages, both of which are now falling and reinforcing the broader downtrend. The failure to reclaim the $2.40 to $2.50 area – an important prior support turned resistance – suggests that sellers still dominate the market structure. Volume also remains subdued compared to previous phases of the cycle, indicating that high-conviction buying has not yet returned.
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The sharp selloff seen earlier in the month reflects an aggressive selloff, followed by a rapid recovery. While this type of price action can sometimes precede short-term relief rallies, the overall trend remains bearish unless XRP can move above key moving averages.
Featured image from ChatGPT, chart from TradingView.com
