XRP reversed a two-month losing streak with a 3.8% gain in July but still lagged behind Bitcoin and Ethereum, which posted gains of roughly 9% and 20% respectively. Entering August, on-chain data hints at declining sell pressure, yet seasonal trends and weak institutional interest may cap momentum.
Analyst Darkfrost pointed out on X that XRP inflows to Binance have dropped to an all-time low, averaging about 3.6 million XRP monthly. Though sizable, this marks the lowest inflow recorded, suggesting holders aren’t rushing to sell on exchanges. The reduced outflow could help XRP solidify support above the $1 mark. Darkfrost noted, however, that a more sustained rally depends on rising demand following this selling lull.
Adding to the picture, another on-chain expert highlighted a spike in XRP withdrawals from exchanges. Between July 24 and 31, 55.6% of XRP transactions on Binance were withdrawals, the highest share since early 2021. This pattern extends to other centralized venues, with deposit transactions hitting multi-year lows. While these stats show a shift in exchange behavior, they don’t necessarily indicate accumulation by investors.
August’s Track Record and ETF Demand
Historically, August has been the weakest month for XRP, averaging returns near 0.4% with losses in four consecutive years. This contrasts sharply with July’s consistent green performance since 2020. Adding to the challenge, spot XRP ETFs saw just $19.6 million in net inflows during July, underlining tepid institutional interest.
The technical signals hint at a possible floor forming, but the seasonal pattern and sluggish ETF demand suggest the token’s path remains uncertain as the month unfolds.
This content is informational and not financial advice.
