Ripple (XRP) Price Forecast: XRP Deposits on Binance Drops $1.3B to Hit 40-Day Low – Is It Bullish?

Ripple (XRP) price fell as low as $2.60 on Sunday February 2, down 17% in 3 consecutive losing days, on-chain data suggests whale accumulation and long-term approach from retail traders. Will XRP price stage an early rebound as US Canada trade war flares.

XRP Price Stabilizes Above $2.60 as Trump Tariff War Triggers Risk-Off Sentiment

Ripple (XRP) has been on a downtrend for the past three days, with multiple bearish catalysts, including escalating trade tensions between the US and Canada. On February 2, XRP fell as low as $2.60, marking a 17% decline from its opening price of $3.10 on January 29.

The recent market turmoil was triggered by the announcement of new tariffs, as former President Donald Trump accused Canada of unfair trade practices and imposed new restrictions on key exports. In response, Canadian Prime Minister Justin Trudeau announced retaliatory measures, igniting fears of a prolonged economic standoff.

The geopolitical uncertainty has sent shockwaves through global markets. Key US Stock indices tumbled, while the crypto market followed suit, with Bitcoin (BTC) plunging to $96,000. Meanwhile, gold gained traction as investors fled to safe-haven assets, highlighting the classic risk-off sentiment seen during times of geopolitical instability.

Despite the losses, Ripple price action showed relative resilience compared to other mega-cap altcoins. While XRP posted a 10% daily drop, some of last week’s top gainers like SUI and Polkadot suffered even steeper declines, exceeding 15% in the same period. This performance suggests that XRP might attract strategic buyers looking to enter the market at a discount amid the uncertainty.

490 Million XRP Transferred from Binance, Hinting at Resilient Long-Term Outlook on ETFs

While XRP’s price has been under pressure, on-chain data points to a potentially bullish underlying trend. A significant metric to assess investor sentiment is the total XRP reserves on Binance. CryptoQuant’s data reveals that XRP deposits on Binance have dropped to a 40-day low, decreasing from 3.04 billion XRP on January 16 to 2.55 billion XRP as of February 2. This means 490 million XRP coins have exited Binance in just over two weeks.

This decline in exchange reserves suggests that long-term investors and whales are accumulating XRP and moving their holdings into cold storage. Binance processes over 40% of the global retail crypto market, making this metric particularly relevant in gauging investor sentiment.

Another interpretation of this trend is that institutional players may be proactively accumulating XRP in anticipation of regulatory clarity surrounding exchange-traded funds (ETFs). Bloomberg analysts recently hinted that a Litecoin ETF may be approved first, raising expectations that other altcoins, such as XRP, could follow. Institutional investors often acquire assets in advance of major regulatory developments, suggesting that the recent outflows could be linked to potential ETF-related holdings.

Valued at the current price, the 490 million XRP removed from Binance translates to approximately $1.3 billion. This supply reduction could act as a buffer against further downward price action, potentially stabilizing XRP at $2.60 while other cryptocurrencies experience more extreme losses.

In conclusion, despite XRP’s recent decline, the asset appears to be holding up better than some of its peers. Whale accumulation, declining exchange reserves, and the ETF narrative could provide strong tailwinds for XRP’s price action once broader market conditions stabilize.

XRP Price Forecast: $3 rebound hopes hinges on $2.60 support

XRP price forecast charts shows the Ripple-backed coin stabilized above the critical $2.60 support level, and despite the recent sell-off, the broader technical structure suggests a potential rebound toward $3.00 if key indicators align.

The Elliott Wave structure on the daily chart signals that XRP recently completed its fifth wave up, followed by a sharp corrective move, a typical market cycle behavior. The Fibonacci retracement levels highlight a key support zone around $2.5990, coinciding with the 0.618 retracement level, which historically acts as a strong reversal point for bullish recoveries.

If XRP maintains this level, buyers could regain confidence, fueling a potential move toward the 0.382 ($2.8439) or even $3.0562 resistance.

The MACD indicator, however, presents a more cautious outlook, with the signal line crossing below the MACD line, confirming weakening bullish momentum. If selling pressure persists and XRP loses the $2.60 support, a deeper retracement toward $2.50 remains likely. However, if buyers absorb the current supply and the MACD histogram begins to show diminishing red bars, it could confirm bottoming out, positioning XRP for a relief rally