XRP Exchange Reserves on Binance Fall to 2.75B as Selling Pressure Eases
TLDR:
- XRP reserves on Binance dropped from 3.05B to 2.75B, pointing to reduced sell-side pressure in May 2026
- Reserve and price both bottomed in early 2026, with XRP hitting $1.25 before stabilizing near current levels
- Analyst CW8900 warns that a break above $1.48 could trigger mass short liquidations and fuel upward momentum
- On-chain reserve stabilization since February 2026 suggests a potential accumulation phase may be forming for XRP
XRP exchange reserves on Binance have declined from a peak of 3.05 billion to 2.75 billion as of early May 2026. The price sits at $1.39 as of writing, reflecting a modest 0.11% gain in 24 hours.
Trading volume stands at over $1 billion. Analysts are now watching on-chain data closely. The reserve movement suggests a possible shift in market dynamics for the token.
Reserve Decline Points to Reduced Selling Pressure on Binance
XRP reserves on Binance reached their highest point of 3.05 billion in July 2025. At that time, prices were elevated, with the token trading near $3.50 in October 2025.
That peak coincided with large volumes of coins moving onto exchanges. Historically, rising exchange reserves alongside high prices often signal distribution activity.
Source: Cryptoquant
From November 2025 through February 2026, both reserve levels and price fell sharply together. The reserve dropped to a low of 2.55 billion, while price touched $1.25.
This type of simultaneous decline is commonly associated with capitulation in crypto markets. Traders and holders appeared to exit positions in that stretch.
Analyst Zakariya Sharif noted that since February 2026, the reserve has stabilized around the 2.75 billion mark. That stabilization follows the earlier period of heavy outflows and declining prices.
A steadying reserve level typically suggests that active selling has slowed considerably. The market appears to be absorbing the earlier pressure.
Sharif outlined three key patterns worth monitoring going forward. Falling reserves suggest reduced sell-side pressure on the market.
A stable reserve range may point toward an accumulation phase forming among buyers. Any further decline in reserves alongside rising prices would serve as a strong bullish confirmation signal.
Short Position Liquidations Could Push XRP Past $1.48 Resistance
Market analyst CW8900 posted on X that high-leverage short positions on XRP are approaching a liquidation zone.
According to the analyst, a breakout above $1.48 could trigger a cascade of short liquidations. Once that resistance clears, the overhead pressure from shorts would nearly vanish. That scenario could accelerate upward momentum for the token.
The $1.48 level is now being watched as a key technical threshold. Short sellers who entered at lower prices face increased risk if price pushes higher.
A forced liquidation of those positions would add buying pressure to the market. Traders are positioning around this level ahead of a potential breakout.
On-chain data, meanwhile, continues to support a cautiously constructive outlook. The combination of a stable reserve and easing sell pressure adds weight to the technical setup.
However, macro conditions and broader market sentiment remain relevant factors. Neither data point alone offers a complete picture of where XRP heads next.
XRP recorded a 7-day decline of 1.87% despite the short-term price stability. Volume above $1 billion over 24 hours reflects continued market participation.
The price action near current levels will be critical in the sessions ahead. Traders are advised to monitor reserve trends alongside price behavior for clearer directional cues.
The post XRP Exchange Reserves on Binance Fall to 2.75B as Selling Pressure Eases appeared first on Blockonomi.
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