Bitcoin stabilized after several weeks of selling, while XRP attempted to consolidate following a sharp drawdown. On-chain data tracked by CryptoQuant shows a significant decline in XRP reserves held on Binance, a shift that may be affecting near-term liquidity and supply dynamics on the exchange.
Exchange Flows Point to Changing XRP Supply on Binance
CryptoQuant’s analysis highlights the “XRP Binance Exchange Daily Flow” as a key indicator of market behavior. Unlike simple token balances, the metric measures the U.S. dollar value of XRP reserves by combining the number of tokens held on the exchange with the asset’s market price. This approach offers a more complete view of how much XRP is readily available for trading and how flows between private wallets and the exchange may be evolving.
According to CryptoQuant, the total dollar value of XRP reserves on Binance fell sharply to about $3.9 billion by March 6. That marks a notable contraction from prior cycle peaks in January and July 2025, when Binance’s XRP reserves exceeded $10 billion. Elevated reserves during those earlier periods signaled abundant on-exchange liquidity and, by extension, substantial potential sell-side supply. Following those peaks, XRP entered a prolonged decline, eventually falling more than 60% and trading below $1.35.
Why Declining Reserves Matter for Liquidity
Exchange reserves often serve as a proxy for immediately tradable supply. Large balances on exchanges can represent potential selling pressure, while declining balances typically indicate that investors are moving assets off-platform, reducing the amount available to sell at a moment’s notice. If demand remains steady as exchange reserves shrink, the resulting supply tightness can help ease sell pressure and support price stabilization. However, on-chain metrics are not predictive on their own and should be considered alongside broader market conditions and liquidity factors.
XRP Price Action: Consolidation After a Steep Pullback
XRP, the native token of the XRP Ledger used for cross-border value transfer, has been attempting to base after a rapid correction from its mid-2025 peak above $3.40. According to TradingView data, XRP recently traded near $1.40 after briefly dipping below $1.20 in early 2026. The price remains below its 50-day, 100-day, and 200-day moving averages, indicating the broader trend is still tilted to the downside.
In the near term, the $1.30–$1.45 band is acting as a consolidation zone as the market digests recent selling. A sustained move back above $1.50 would be an early sign that bullish momentum is rebuilding, while the $1.90–$2.00 region—where the 200-day moving average is tracking—stands out as the next major resistance. On the downside, immediate support sits around $1.25–$1.30; a breakdown below that range could reopen the path toward recent lows near $1.20.
Market Backdrop
Broader crypto market volatility remains elevated, but Bitcoin’s modest recovery has helped stabilize sentiment. Whether XRP’s declining exchange reserves on Binance translate into sustained price support will depend on how demand and liquidity evolve in the weeks ahead.