XRP is showing signs of increasing risk of a selloff after a sharp increase in inflows to Binance, with CryptoQuant contributor Darkfost (@Darkfost_Coc) linking the move to escalating geopolitical tensions involving the United States, Israel, and Iran. The set-up is important because large moves into the stock market often precede a surge in liquidation or voluntary selling, especially during broader risk shocks.
Darkfost said the market reaction intensified after the weekend surge in the Middle East, when “the first strike began shortly after traditional financial markets closed”. In his opinion, this time was important. “This time has increased uncertainty in risk assets, and crypto has reacted almost immediately to a geopolitical shock.”
US-Iran tensions threaten to sell $650 million of XRP
He said that the clearest signal is now visible in the flow of XRP to Binance. According to Darkfost, the exchange received more than 472 million XRP during the past week, which is equivalent to about $652 million. The chart he shared shows a cluster of unusually large entry bars at the end of February, including several daily spikes from previous February levels, while XRP’s price line remained relatively volatile, ending near $1.37.
Darkfost described the move as the largest inflow on Binance for XRP in February. This does not in itself confirm an outright sell-off, but it does bring a lot of supply closer to the market at a time when macro nerves are already high.
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“Such inflows typically reflect the defensive position of investors holding XRP,” he wrote. “When large amounts of tokens move to exchanges, it often signals a potential readiness to sell or at least place liquidity into the market.”
This distinction is important. Not every exchange transfer turns into an immediate sale, but the market generally sees steady inflows as a sign that owners are getting ready to act. During periods of geopolitical stress, traders tend to increase risk, reduce directional exposure, and move assets to places where they can exit quickly if volatility accelerates.
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Darkfost said that the current pattern is worth monitoring, as flows of this size can change the short-term trading environment even without a complete holiday. “When such flows are recorded, they can create the conditions for a sudden wave of selling pressure, capable of influencing prices in the short term,” he said.
An open question is whether the latest moves mark the beginning of a broader phase of distribution or just a temporary burst of fear re-location. Darkfost put it bluntly, saying that traders should see if “it reflects the beginning of a broader distribution dynamic in XRP or short-term wild moves caused by geopolitical uncertainty.”
At press time, XRP was trading at $1.3463.
Featured image created with DALL.E, chart from TradingView.com
