XRP Eyes Rebound as Reserves on Exchanges Fall, Selling Pressure Eases: Analyst

XRP could be setting up for a recovery as the supply held on exchanges continues to shrink, easing the selling pressure that has weighed on the token.

Binance XRP Reserves Drop to 2.69B

The argument centers on the Exchange Reserve metric, which tracks the total XRP sitting in Binance wallets. Because Binance is heavily used by institutions and large holders, falling reserves typically point to coins being pulled off the platform for long-term storage, while rising reserves often signal that holders are positioning to sell, according to CryptoQuant analyst PelinayPA.

In a recent post, PelinayPA noted that Binance’s XRP reserves have slipped from roughly 2.8 billion to 2.69 billion XRP in recent months, which the analyst says reflects investors withdrawing coins, lighter selling pressure, and a stronger preference for holding. Overall selling pressure now looks weaker than it did in mid-2025.

Notably, reserves have been declining even as the price has fallen. The analyst noted that divergence occurs as institutions accumulate while retail investors remain inclined to sell. Backing that view, both long and short liquidations have dropped sharply, suggesting leveraged positions on both sides have largely been flushed out.

“Since leveraged positions on both sides have largely been cleared out, recent downside pressure appears to be driven mainly by spot market selling rather than derivatives activity,” the analyst wrote.

Meanwhile, momentum sits in neutral territory. The Money Flow Index reads around 43, placing XRP between oversold and overbought and pointing to a market gripped by neither extreme fear nor greed.

Still, the analyst didn’t call it a bottom. “Based on this chart, most investors appear to be in a wait and see mode. As a result, each wave of selling is still capable of pushing the price lower,” they said, describing the current setup as a corrective phase within a broader downtrend.

For that downtrend to be declared over, the analyst said XRP needs to reclaim $1.20 in the short term and push above $1.62 over the medium to long term, a move that would require a meaningful pickup in buying demand.

Wall Street Now Copies XRP’s Vision

Last week, Ripple CEO Brad Garlinghouse publicly endorsed comments from Flare co-founder Hugo Philion about Wall Street firms now embracing the institutional vision that XRP pioneered. In a recent interview, Philion said he had always been interested in XRP and praised Ripple’s payments strategy, arguing the company’s main hurdles have been regulatory rather than tied to its business model.

The remarks gained traction after an X user shared the interview clip alongside the line, “They mocked the vision. Now they’re copying it.” Garlinghouse replied simply, “True,” and the one-word response quickly went viral within the XRP community, helping lift sentiment after a recent price decline.