Alert: XRP Reserve on Binance Crunch Hard in Just 3 Days, What’s Going On?

In Brief:

• Binance’s XRP reserves fell by 56.88 million tokens in three days, erasing over half of the preceding two-week reserve buildup.
• Analyst Amr Taha views sustained reserve declines as potentially bullish because fewer exchange-held tokens could ease immediate selling pressure on XRP.
• Despite the decline, Binance retained 2.647 billion XRP, while unidentified transfer destinations leave whale accumulation and lasting supply reductions.

CryptoQuant analyst Amr Taha has flagged a bullish signal from declining Binance XRP reserves, highlighting a three-day reduction in total assets. In his latest analysis, Taha noted that XRP reserves surrendered more than half of its two-week increase within that period.

Binance Loses 56.88 Million XRP From Its Tracked Reserves

CryptoQuant data shows that XRP reserves on Binance fell by approximately 56.88 million tokens between September 27 and September 30. Holdings fell from about 2.704 billion to 2.647 billion XRP, a 2.1% reduction in three days.

Previously, Binance accumulated roughly 100 million XRP between September 13 and September 27, lifting reserves from approximately 2.60 billion. By September 27, holdings approached 2.70 billion XRP, before the subsequent reversal erased approximately 57% of the preceding buildup. According to Taha, the reserve declined faster than it grew, averaging nearly 19 million XRP daily against additions of 7.1 million.

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Source: CryptoQuant

Consequently, the average daily reduction reached approximately 2.7 times the earlier accumulation rate, underscoring the speed of September’s reversal. Nevertheless, Binance retained roughly 47 million XRP above its September 13 balance, leaving part of the increase intact.

Analyst Flags Potential Relief From Immediate Selling Pressure

Meanwhile, Taha noted that the movement signals bullish as it potentially reduces the amount of XRP available for spot trading. He stressed that sustained reserve declines could tighten near-term supply and ease selling pressure if the downward trend persists.

However, the figures do not identify transfer recipients or establish whether tokens were moved into private wallets or other exchanges. Additionally, the reduction represents a net balance change, rather than the total amount of XRP withdrawn during that period.

Binance’s broader reserve history shows holdings around 2.80 billion XRP during March, followed by declining balances through subsequent months. Reserves later approached about 2.60 billion in July and August, placing the balance above several earlier lows.

Meanwhile, XRP’s price retreated near the period’s endpoint, providing no evidence of an immediate bullish response to falling reserves. Taha’s assessment remains conditional on sustained declines, while his figures document a rapid reversal of Binance’s September XRP buildup.

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