Binance XRP Reserves Plunge 500M as Price Crashes 63% from 2025 Peak

A stark on-chain warning has emerged as Binance's XRP reserves hit their lowest level since February 2024, dropping nearly 500 million tokens in a year to just 2.6 billion. This reserve drain coincides with a severe 10% price correction, pushing XRP down 63% from its 2025 peak. The exodus from the exchange is driven by the launch of new ETFs and a broader shift toward self-custody, as traders move assets off centralized platforms. Amid this uncertainty, XRP is now trading within a critical moving average band, a zone that historically determines its next major move.

Reserves decline as ETFs launch and self-custody rises

During this period, XRP’s price fell by 63%, sliding from a high of $3.66 to around $1.34. Despite the steep price drop, the reduction in reserve holdings on Binance continued, suggesting that the outflow was not directly tied to price performance.

Analyst Darkfost, who tracks XRP flows closely, highlighted on social media that Binance’s XRP reserves rise when the token rebounds in price but tend to decrease as corrections set in. This pattern has been consistent in recent quarters.

Darkfost noted that while XRP closed the month with close to 30% gains, reserves at Binance continued to dwindle, falling to multi-year lows despite improved price action.

Some analysts attribute part of the outflow to the launch of spot XRP exchange-traded funds (ETFs) in late 2025. These investment vehicles may have prompted issuers to purchase large amounts of XRP on the open market, reducing the pool of tokens kept on exchanges.

A portion of the reserve decline may also reflect shifting preferences among holders. Many investors are moving coins off exchanges into self-custody solutions, limiting their exposure to third-party risk.

Binance, the world’s largest cryptocurrency exchange by trading volume, frequently adjusts reserve levels based on user withdrawals and deposits, as well as broader operational needs.

Mini dictionary: Spot XRP ETF, an investment fund that holds XRP and is listed on a regulated exchange, allowing investors to gain price exposure without direct custody of the cryptocurrency.

Consistent net outflows from exchange reserves are commonly perceived as a long-term bullish indicator, especially if driven by strong investor accumulation or growing institutional interest.

XRP price trades within key moving average range

XRP currently trades near $1.34, reflecting a 2.85% daily decline and an 8.1% loss over the past week. However, despite shorter-term volatility, XRP gained nearly 30% for the month, signaling renewed interest after a prolonged downtrend.

Technical analyst ChartNerd identified resistance at the 50-week exponential moving average (EMA) near $1.53. Several attempts to surpass this level were rejected, capping upside momentum for now.

Support appears to be holding near the 20-week EMA around $1.27. Should XRP break below $1.36, traders are watching for a move closer to this lower band.

ChartNerd observed that XRP has been “compressing” between the 20-week and 50-week EMA, a setup that often precedes a sharp move in either direction.

Trading volume for XRP was just under $2 billion in the past 24 hours. Many market participants are closely monitoring the ongoing exchange reserve outflows alongside this price consolidation.

Some traders argue that longer-term exchange reserve trends tend to be more significant for price discovery than short-term swings. The direction of reserves into the next quarter may help shape broader sentiment and trading dynamics for XRP.