Binance XRP Reserves Hit Historic Low Amid Bullish $3 Breakout Prospects

Recent on-chain data reveals a dramatic depletion of XRP reserves on Binance, dropping to just 2.7 billion tokens—the lowest level recorded in years. According to CryptoQuant analyst Darkfost, this significant withdrawal trend indicates investors are moving their holdings into long-term custody, a behavior that typically reflects strong market conviction and anticipation of substantial price appreciation. The supply reduction on one of the world's largest cryptocurrency exchanges coincides with growing institutional interest and bullish technical patterns suggesting a potential breakout toward the $3 price level. Since October 6, Binance has observed sustained withdrawal activity, creating a supply squeeze that could amplify upward price pressure if demand continues to accelerate. This combination of fundamental supply dynamics and technical momentum positions XRP for what many analysts believe could be a significant rally in the coming months, with the $3 threshold representing a key psychological and technical resistance level that bulls are eagerly targeting. The current market conditions, characterized by diminishing exchange reserves and increasing long-term holding behavior, mirror patterns previously observed before major cryptocurrency bull runs, adding credibility to the optimistic price projections circulating within the trading community.

XRP Reserves on Binance Hit Record Lows as Bulls Eye $3 Breakout

XRP's price trajectory is turning bullish as on-chain data reveals a striking trend: Binance's XRP reserves have plummeted to 2.7 billion tokens, the lowest level in years. CryptoQuant analyst Darkfost attributes this to investors withdrawing holdings for long-term custody—a behavior typically signaling strong conviction.

The supply crunch coincides with surging institutional interest. Since October 6, Binance has seen sustained outflows, while U.S. spot XRP ETFs gain traction. Canary Capital launched the first such product on November 13, with Franklin Templeton, Bitwise, and Grayscale quickly following. The 21Shares XRP ETF is set to debut imminently.

Regulatory tailwinds amplify the momentum. Ripple's dollar-backed stablecoin received formal recognition in Abu Dhabi's Global Market on November 27, marking a strategic foothold in Middle Eastern markets. Market watchers now speculate whether dwindling exchange liquidity could propel XRP past the $3 threshold.

XRP Reserves on Binance Plummet Amid Market Skepticism

Binance's XRP reserves have sharply declined from 3 billion to 2.71 billion tokens since mid-October, sparking debates about the asset's liquidity and investor confidence. The drop coincides with XRP's stagnant price performance—now at $2.17, a fraction of its $3.025 peak—despite regulatory clarity and ETF speculation.

Market observers suggest the outflow reflects either a shift to self-custody wallets or strategic accumulation by long-term holders. The trend mirrors broader exchange liquidity pressures, with Binance's XRP supply contraction outpacing other major assets.