XRP experienced a sharp price correction on August 22, but one trend continued beneath the sell-off: XRP tokens kept leaving Binance.
Since November 2025, Binance’s monthly XRP reserves have declined from 3.1 billion to 2.6 billion tokens, representing a reduction of roughly 500 million XRP.
Normally, a 63% drop from $3.66 toward $1.35 could encourage holders to return tokens to exchanges for sale. Instead, Binance reserves continued to trend lower through both rebounds and retracements, while the monthly average fell to its weakest level since February 2024.
Source: CryptoQuant
This divergence suggests that XRP holders are increasingly moving tokens away from exchanges such as Binance rather than depositing them for sale. However, the trend does not prove accumulation, as custody changes and other Binance transfers can also reduce exchange reserves.
Even so, fewer XRP tokens held on exchanges means less immediate supply available for selling. If withdrawals continue as demand improves, tightening exchange supply could support XRP’s longer-term recovery.
Whale Withdrawals Drive XRP Outflows
As XRP continued leaving Binance, August revealed another shift: large holders became increasingly responsible for the change in outflow activity. Whale outflow dominance reached 84.25% on August 21, while retail outflows fell to just 15%.
The 69.25-point gap nearly matched March’s 84.6% whale peak, indicating that large-holder activity had returned to an extreme level.
Whales generated 5.6 times more outflows than retail investors, up from the 4.5-times level recorded in June.
Source: CryptoQuant
This concentration matters because large transfers can reshape exchange liquidity more quickly than dispersed retail movements. However, outflows alone cannot confirm whether whales are accumulating XRP or simply relocating their tokens.
Whale dominance has since eased to 78.5%. If it remains near 80%, large holders will continue to represent the primary force behind Binance’s XRP withdrawals.
XRP Tests Key Support as Selling Pressure Continues
Whale withdrawals may be reducing the amount of XRP held on Binance, but price action shows that lower exchange supply has not yet brought buyers back. XRP’s rally stalled near $1.56, and repeated lower highs pushed the price toward $1.35, keeping sellers firmly in control.
Source: TradingView
At press time, XRP was trading at $1.32. A break above the current bearish trend line would give bulls their first significant opportunity to reverse the recent losses.
If buyers successfully defend the current support area, XRP could establish a foundation for recovery rather than simply pause before another decline. However, weak trading volume indicates that buyers have not yet committed enough capital.
A move above $1.42 would improve the outlook and open the path toward the $1.48-$1.50 range. Conversely, a break below $1.3199 could allow bearish momentum to overwhelm the reduced exchange supply.
Such a move would expose the $1.25-$1.28 zone, extending the correction and delaying a meaningful XRP recovery.
Key XRP Price Levels and Binance Reserve Trends
- XRP reserves on Binance have fallen by approximately 500 million tokens since November 2025.
- Whale withdrawals accounted for 84.25% of XRP outflows on August 21.
- XRP must hold $1.3199 and reclaim $1.42 to strengthen its recovery prospects.
