XRP reserves held on Binance have declined to their lowest levels in nearly two years. According to on-chain data, the monthly average of XRP reserves dropped from 3.1 billion tokens in November 2025 to 2.6 billion tokens presently, representing an outflow of roughly 500 million XRP.
The reserve decline is notable given that it occurred during a period of significant price weakness. XRP fell 63% from its 2025 peak of $3.66 to trade near $1.35. Despite this decline, investors continued withdrawing tokens from the exchange rather than accumulating them at lower prices.
Potential Drivers of Reserve Outflow
Analysts point to several factors that may have contributed to the shrinking reserves. The launch of spot XRP ETFs in late 2025 could have driven part of the outflow, as ETF issuers may have needed to acquire XRP on the open market to meet demand.
The pattern of reserve movements suggests that some investors move tokens off exchanges during downturns, potentially reflecting a preference for self-custody among holders. Exchange reserves also shift based on routine withdrawal and deposit activity, though analysts note that the scale of the current movement points to more than short-term operational adjustments.
Price Consolidation at Key Levels
XRP traded at $1.34 at the time of reporting, down 2.85% over the past day. The token posted close to 30% gains for the month but fell 8.10% over the past seven days.
The token is consolidating between two key moving averages. The 50-week exponential moving average near $1.53 has rejected recent price rallies, while the 20-week EMA around $1.27 may serve as support. Traders are watching for a confirmed breakout beyond either level to signal the next directional move.
Falling XRP reserves alongside price consolidation create a mixed near-term picture, with reserve trends typically carrying more weight over longer time horizons than daily price swings.
