XRP withdrawals on exchanges have climbed to a five-year high just as the token’s price tests a critical support zone. On July 31, Binance recorded a seven-day XRP withdrawal share of 55.6%, its largest since February 2021. Across all centralized exchanges, withdrawals also hit a peak share of 54%, marking the strongest outflow in nearly 65 months, according to CryptoQuant data analyzed by trader Amr Taha.
At the same time, deposit volumes fell sharply. Binance deposits dropped to just 44.3% of transactions, while the industry-wide figure touched 45.95%, both lowest in five years. This created a notable gap between withdrawals and deposits 11.3 percentage points on Binance and roughly 8.05 points across other exchanges. The shift accelerated in the last weeks of July, coinciding with XRP’s price hovering between $1 and $1.05, a multi-year support level.
XRP’s price and reserves signal easing selling pressure
The token’s price has struggled throughout 2023, dropping over 42% year-to-date and recently sliding 3% in a day to roughly $1.06. However, the surge in withdrawals suggests renewed demand that could ease selling pressure. XRP’s reserves on Binance have declined over the last three months, falling from over 2.77 billion tokens in May to around 2.6 billion at present. Lower reserves combined with higher withdrawal activity could indicate fewer tokens left to sell on the exchange, potentially stabilizing the price amid a bear market marked by lower highs and lows.
This dynamic aligns with XRP’s recent breakout attempt from a long-term symmetrical triangle pattern. If withdrawals continue to outpace deposits and reserves keep shrinking, XRP’s price could find firmer footing. This contrasts with trends seen in other altcoins during extended sell-offs, highlighting how exchange flows might offer clues about market sentiment and future price moves.
This material is for informational purposes only and does not constitute financial advice.
