XRP reserves on Binance have fallen to their lowest level since December 2022, according to CryptoQuant data. Yet the price keeps slipping, and a bear flag on the four-hour chart points to a possible further drop.
Binance's XRP reserve fell to 2.47 billion XRP on October 30 from 2.69 billion XRP on October 28. That is the lowest level since December 2022. The drop marks a decrease of about 8.18%, with over 220 million XRP withdrawn in two days.
Other exchanges show the same trend, though the declines were smaller. Bybit's reserves dropped from 306 million to 286 million XRP, while Bithumb's fell from 1.847 billion to 1.837 billion XRP, down approximately 0.54%.
Price slips despite shrinking supply
A decline in exchange reserves potentially reduces immediate selling pressure if demand remains steady. However, U.Today notes that lower balances do not always mean that investors are accumulating XRP, which could be why XRP has yet to react.
Price is indeed moving the other way. Ripple (XRP) was down 0.52% to trade at $1.24 at the time of CoinGape's writing.
CoinGape also reports that XRP ETFs had only one day of inflows between October 26 and October 30, and recorded outflows of $496,000 on October 30.
Bear flag points to $1.16
On the four-hour chart, CoinGape sees a bear flag pattern. A breakdown of support could push the price below $1.20 to the 123.6% Fib of $1.16, while a move above resistance at $1.28 would invalidate the pattern.
Derivatives data leans the same way. The XRP long/short ratio has dropped to 0.88 and has been below 1 since October 27, which suggests short accounts are outnumbering long accounts.
On the daily chart, the 200-day EMA of $1.36 is the level a move toward which could signal that the long-term trend has shifted bullish.
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