TLDR
- XRP fell below the $2 mark during a broader market sell-off driven by geopolitical tensions.
- Over $1.2 billion worth of XRP exited Binance between June 16 and June 22.
- The exchange reserve drop of 614 million XRP may indicate long-term accumulation by investors.
- Reduced exchange liquidity could amplify price moves if demand increases in the near term.
- XRP is trading below its 50-day simple moving average, which suggests short-term bearish momentum.
XRP experienced a steep decline last week, falling below the $2 mark amid notable market-wide volatility. Despite this downturn, a major shift occurred as over $1.2 billion worth of XRP left exchange reserves. The movement suggests shifting investor behavior, possibly indicating preparation for long-term holding strategies.
XRP Exchange Reserves Drop Sharply
According to CryptoQuant data reviewed on June 23, XRP exchange reserves on Binance dropped significantly from June 16 to June 22. Total XRP holdings on the platform fell from 2.852 billion to 2.238 billion tokens during that period. This decrease of 614 million XRP, worth around $1.228 billion at current prices, marked a substantial outflow.
The decline in reserves may reflect a move by investors to shift assets into cold storage or personal wallets. Such behavior typically points to reduced selling pressure in the short term and indicates potential accumulation. While XRP’s market price dropped, the reserve movement suggests confidence among long-term holders or institutional actors.
Reduced exchange liquidity may tighten supply, potentially amplifying price reactions if demand rises. This change aligns with a broader trend of asset withdrawals during uncertain market conditions. As fewer tokens remain on exchanges, rapid price movements can occur if momentum builds.
Ripple Lawsuit and ETF Buzz Shape Sentiment
XRP’s recent decline followed heightened geopolitical risks that weighed heavily on global financial markets. Tensions escalated after U.S. airstrikes on Iranian nuclear sites, intensifying the conflict between Iran and Israel. These developments affected risk sentiment across both crypto and traditional markets.
Alongside external pressures, XRP also faces internal uncertainty tied to the ongoing SEC lawsuit against Ripple Labs. Market participants continue to monitor potential regulatory clarity and developments that could affect long-term valuation. Additionally, speculation around a possible U.S.-listed spot XRP ETF contributes to evolving sentiment.
Despite the sell-off, XRP recovered slightly, trading at $2.03 with a 3% gain over the past 24 hours. However, the token remains down around 10% for the week. Short-term indicators remain weak, with XRP trading below its 50-day simple moving average.
Technicals Hint at Divided Momentum
XRP’s price action reflects a short-term bearish trend despite long-term support levels remaining intact. The token trades below its 50-day SMA of $2.29, suggesting limited momentum for immediate gains. Yet, XRP stays above its 200-day SMA of $1.84, signaling resilience over a longer timeframe.
The Relative Strength Index stands at 36.26, indicating that XRP approaches oversold conditions with potential for renewed buying activity. Technical support a possible price reversal if bullish momentum strengthens in the coming sessions. Still, any rally would require broader market support and sustained inflows.
