The price of XRP is nearing a critical support level as the exchange’s reserves drop sharply, a development that could strengthen the available supply in the market.
Conclusion
- XRP is trading near $1.38 while protecting the $1.30 support zone after a one-month decline.
- Binance’s XRP reserves fell from more than $10 billion in 2025 to around $3.9 billion, reducing a potential sale offer.
- Technical indicators are showing consolidation, with $1.42 acting as a key level for a possible recovery.
XRP (XRP) was trading at $1.38 at press time, down 3.1% over the past 24 hours. The token has ranged from $1.28 to $1.46 in a weekly range and has lost around 17% over the past month.
It is now more than 60% below its all-time high of $3.65 since July 2025. Market activity also cooled down.
Trading volume in the last 24 hours fell to $2.28 billion, down 38% from the previous day. Data from CoinGlass shows derivatives volume fell 26% to $3.58 billion, while open interest fell 2.69% to $2.33 billion, indicating some traders are closing or reducing positions.
Currency reserves are rapidly decreasing
A March 6 analysis by CryptoQuant contributor Amr Taha shows that the amount of XRP on Binance has dropped sharply in recent months.
Stock exchange data measures the total value of a particular asset sitting on a trading platform. For XRP on Binance, the metric reflects the dollar value of all tokens held on the exchange.
This number varies depending on two things: how many coins users hold on the platform and the current market price of XRP.
The latest figures show that XRP reserves on Binance are now worth about $3.9 billion as of March 6. Not long ago, the price was much higher. In January and July 2025, stocks briefly topped $10 billion before resuming their current decline.
A large balance on the stock market is usually seen as a sign that selling pressure may be increasing. When a large amount of tokens are sitting on the exchange, traders can easily sell them, which can increase potential selling pressure.
When these balances decline, it often means that investors move their assets to private wallets, reducing the supply available for trading. (f demand remains stable while tokens remain on exchanges, tighter supply may help support prices and may even create upward pressure for XRP.
Technical analysis of XRP price
From a chart perspective, XRP may find a bottom after a long downtrend.
The area between $1.30 and $1.32 has started to act as a key short-term support level. At one point, the price dropped below $1.30, but the decline did not last long. Buyers moved in quickly and several daily candles were able to close from this range.
Such a reaction usually indicates that traders are protecting the level. However, XRP has yet to recover the average of the Bollinger Bands, which is the 20-day moving average around $1.40 to $1.42.
As long as the price remains below this mark, the short-term momentum is still slightly bearish. Volatility has also decreased. After February’s sharp decline, the Bollinger Bands have narrowed significantly.
This type of consolidation often occurs during market movements. Historically, these periods of compression usually precede a larger move following a return to volatility.
Torque indicators show a slight improvement. The relative strength index, which was previously deeply oversold, fell near 25 to around 44. A move above the 50 mark will be neutral, indicating momentum strengthening.
However, the broad trend remains unchanged. Since peaking in January, XRP has continued to form highs, a classic sign that the downtrend is technically still in place. A decisive break from the $1.50 to $1.60 resistance area is needed to reverse this structure.
Support at $1.30 is still a crucial level to consider at this time. XRP may try to return to $1.50 or even $1.60 if buyers can hold it and bring the price back above $1.42. However, the next downside targets could be seen at $1.20 or even $1.10 if support allows.
