A significant withdrawal wave is reshaping XRP’s market structure, as Binance’s reserves fall to some of their lowest recorded levels. The trend, which began in early October, is now being flagged by CryptoQuant as a classic setup for a potential supply shock.
Large-scale transfers have been reported since October 6, removing an estimated 300 million XRP from Binance alone. Consequently, the exchange’s holdings have dropped to roughly 2.7 billion tokens from the existing 3 billion tokens. Analysts point out that such a rare contraction in supply often indicates stronger investor confidence, especially when outflows remain steady despite price volatility.
On-chain researcher Darkfost highlighted the pattern on November 27, noting that investors appear increasingly inclined to store XRP in private wallets. Such behavior often signals longer-term positioning rather than preparation for near-term selling. As a result, the pool of readily tradable tokens continues to shrink.
Moreover, data from Arab Chain shows the proportion of XRP held on centralized exchanges has hit its lowest point of the year. Market analysts argue that the reduction could amplify upward price movements once demand strengthens, as fewer tokens are available to absorb new buying.
Contrasting Price Action and Shifting Sentiment
Even as supply tightens, price performance remains uneven. XRP trades near $2.23, showing minimal intraday movement. Yet short-term losses remain notable. The token has fallen more than 12% over the past two weeks and dropped 17% across the last month. Despite that decline, withdrawals continue at scale, suggesting that many holders view current prices as temporary rather than reflective of long-term value.
Additional market metrics add new layers to the developing picture. CryptoQuant data shows open interest for XRP futures on Binance at its lowest level in a year, signaling a pullback in speculative activity. Traders appear less willing to take leveraged positions, even as exchange supply continues to thin.
Meanwhile, several newly launched XRP spot ETFs failed to reverse selling pressure from large holders. Whale wallets offloaded more than 180 million XRP in recent weeks, creating a counterweight to the broader accumulation trend seen on exchanges.
Technical analysts remain focused on the $2.00 support range. Ali Martinez has emphasized that holding this threshold is critical for preserving the potential formation of a bullish structure. Any sustained decline below the level could weaken momentum and extend the recent downtrend.
Evans Kelvin
The CoinRemark Team
