The Crypto Basic

The amount of XRP on exchanges is dropping fast, as whales and sharks appear to be heavily stacking the altcoin.

XRP is seeing increased accumulation, evident in the number of coins remaining on exchanges. Over the past several months, the amount held on Binance, the largest crypto platform by trading volume, has continued to decline, reaching levels last seen in four months.

XRP Reserve on Binance Reaches 4-Month Low

Data from CryptoQuant shows that the XRP exchange reserve on Binance has dropped to 2.64 billion tokens, about 4.2% of the asset’s circulating supply. While this is still sizable, it marks a notable decline from the figures recorded months back.

For context, Binance held roughly 2.8 billion XRP in its reserve in March. This figure reduced slightly before reaching a high of 2.78 billion in May. Today, the exchange’s XRP reserve has further dropped by 5% to 2.64 billion.

Notably, the last time the amount of the token held by Binance hit this low was in February, over four months ago. Then the exchange’s reserve reached 2.55 billion, as market users bought the market dip.

Now, the current reserve drop suggests that smart money is back to buying the dip. Market users are increasingly moving XRP from where it can be easily sold to self-custody wallets, possibly for long-term holding.

Such activity is bullish in every sense. Not only does it reduce selling pressure, but it also shrinks available supply. That way, steady demand would have more impact on prices than when a larger supply is in the market. Additionally, it reflects confidence in XRP’s mid- and long-term price prospects.

XRP Exchange Outflow Beyond Binance

Interestingly, the exchange outflow is not limited only to Binance. Coinglass data shows that over the past 10 days, a net total of $42.67 million has left trading platforms globally. During this period, inflows stand at $822 million and outflows at $864.6 million, culminating in the net difference.

This trend has extended even to recent data. In the last 24 hours, holders withdrew $69.84 million, larger than the inflows of $64 million by $5.78 million.

The accumulation is notable because it comes despite the ongoing correction. XRP is down 7% in the past 24 hours, joining a broader market trend. Yet, market users see each dip as an opportunity to buy more, looking beyond the short-term bearish trend.

Aligning Bullish Metrics

Other metrics also tick bullish for XRP. For context, active XRP addresses have increased 36% in the past two weeks as network activity improves. With more receiving wallets active on the XRPL Ledger, it also confirms that outflows are moving to long-term self-custody wallets.

Additionally, the TD Sequential also recently printed a buy signal on the XRP daily chart. This pattern confirms that selling pressure is nearing exhaustion, and a rebound could follow in the coming days.

In the meantime, XRP trades at $1.05, holding above the $1 support.

Daily active addresses on the XRP Ledger have increased in the past two weeks, signaling stronger network usage despite XRP’s persisting price struggles.

Recent data shows that the number of daily XRP users has climbed steadily for a while now. Although the broader crypto market remains uncertain and the altcoin’s price has continued to slide lower, more people are using the XRP Ledger.

XRP Active Addresses Rise 36%

On June 14, the number of active XRP addresses stood at 27,205, according to data from market intelligence platform Santiment. However, on June 28, this metric had climbed to 37,202 addresses, a 36% increase.

For the uninitiated, the daily active addresses track the unique wallets using the XRP Ledger each day, reflecting adoption. When this increases, it shows that the network is becoming busier.

Interestingly, the metric has continued to increase over the last few days. For instance, on June 25, active addresses reached 41,490, levels last seen much earlier in the month. This meant that the earlier skepticism that followed the price decline is slowly fading, and users are trooping back to the network.

Furthermore, the active address metric has maintained its current level for most of 2026. While there have been several spikes and dips to reflect changing market situations, the number of users using the Ledger daily has averaged around 38,000.

This is notable considering that XRP has dropped 43% YTD. The consistency in network activity throughout the dip reflects real demand for the Ledger’s infrastructure.

Price Struggles Regardless, but There’s a Catch

Despite the increase in active users, the XRP price has continued to struggle. Since forming a lower high at $1.29 on June 15, the coin has dropped 19% to its current price of $1.04. This continues to build on the lackluster performance, which has seen XRP drop 21% so far this month.

However, there is a catch. Growing active addresses are usually bullish, as they reflect increasing adoption and user interest. When it pairs together with weak price action, a divergence emerges.

Rising network usage, especially during a price dip, might suggest accumulation. More addresses are activating on the XRP Ledger to buy the coin at a cheaper price. A corresponding increase in transaction volume confirms this.

Data from CryptoQuant shows another compelling metric. Active receiving addresses on the XRP Ledger stand at 39,916, far more than the active sending addresses at 12,676. This means that more unique wallets are actively accumulating XRP either through purchases, withdrawals from trading platforms, or P2P transfers.

In the meantime, XRP is trading near the $1 support, with bulls consistently trying to defend this level. Should the downtrend persist, the next major supports are near $0.80 and $0.62.

The XRP Sharpe Ratio indicators confirm that market participants are now seeing lower compensation for the amount of risk they take.

XRP’s ongoing price decline has pushed its losses for the year to 43%. While the falling price has already weakened market sentiment, new data points to another growing concern. 

Specifically, XRP’s risk-adjusted performance has dropped considerably, suggesting that traders are no longer getting enough returns for the level of risk they are taking.

What the Sharpe Indicators Say About XRP

The latest figures show that the 30-day Sharpe Ratio has fallen to -0.29, while the Sharpe Z-Score has dropped to about -1.57. Also, the 7-day Sharpe Momentum stands at roughly -0.09. 

These figures indicate that XRP’s recent returns have become weaker compared to the amount of price volatility traders have faced over the past few weeks.

For context, the Sharpe Ratio measures how much return an asset generates for every unit of risk. A higher reading means the asset produces better returns relative to its volatility, while a lower reading shows that investors take on more risk without receiving enough return in exchange.

The current readings suggest XRP remains in a weak position. Specifically, the 30-day Sharpe Ratio of -0.29 shows that the asset’s performance over the past month has not been strong enough to justify the amount of price swings investors experienced. 

Meanwhile, the Sharpe Z-Score at -1.57 indicates that XRP’s current performance is much weaker than its historical average. In addition, the negative 7-day Sharpe Momentum shows that short-term momentum continues to weaken. 

This suggests that recent recovery attempts have not been strong enough to change the broader trend or improve XRP’s risk-adjusted returns. 

XRP Holds Above $1.04 as Bulls Face Major Resistance

Besides the weak Sharpe readings, XRP’s daily chart suggests the asset has found new support around the $1.04 level. After losing the $1.30 price area, which served as XRP’s final line of defense from February to May 2026, the token turned that former support into resistance when it broke below it in June 2026.

XRP later tried to recover the $1.30 level, but sellers rejected the attempt on June 15, causing another decline that pushed the price down to $1.04. XRP now trades at $1.04293, with this level acting as its latest support. 

If the asset falls below $1.04, the next support sits around $1.0065, which matches the lower Bollinger Band on the daily chart. A break below that level would bring the sub-$1 range into focus for the first time since November 2024, increasing the chances of a decline toward $0.93 and then $0.87.

For XRP to recover from the latest sell-off, buyers must first push the price back above the middle Bollinger Band near $1.12. They would then need to reclaim the upper Bollinger Band around $1.23. 

Clearing those levels could allow XRP to challenge the important $1.30 resistance again. If buyers successfully reclaim that area, the next upside target could be $1.55.

DMI Shows Bears Still Have the Upper Hand

Meanwhile, the Directional Moving Index (DMI) also shows continued weakness in XRP’s market structure. Specifically, the negative directional indicator (-DI) has climbed to 30 and continues to move higher. 

At the same time, the Average Directional Index (ADX) has reached 28 and continues to trend upward. In contrast, the positive directional indicator (+DI) has dropped to 15.2 and continues to move lower.

These readings show that sellers still control the market, while buyers have yet to build enough strength to change the trend. Unless these indicators begin to improve, XRP could remain under pressure and face the risk of further price declines in the near term.

XRP derivatives traders have gone through a major leverage reset in recent weeks.

Notably, long liquidations have surged 832% above the three-month average, while falling open interest and negative funding rates point to aggressive deleveraging rather than broad selling by long-term holders.

In other words, leveraged traders betting on higher prices have been forced out in recent weeks. However, stable spot exchange reserves suggest many XRP holders are choosing to ride out the volatility instead of selling.

For context, XRP’s price has dropped by more than 20% over the past three months. On a yearly basis, XRP is down 53%.

XRP Derivatives Undergo Major Reset

CryptoQuant data shows XRP experienced a sharp wave of long liquidations over the past month. Nearly $3 million in leveraged long positions were wiped out during the latest decline. One liquidation event alone erased about $6.7 million in long positions, highlighting the scale of the sell-off.

At the same time, XRP’s open interest dropped from roughly $1.18 billion to around $1.04 billion, an 11.1% decline over the month. Falling open interest alongside rising liquidations suggests traders are leaving the market rather than rotating into new positions.

Funding rates on Binance have also turned deeply negative. CryptoQuant said this represents a 463% shift from the quarterly baseline. Negative funding means short sellers are paying longs, showing bearish positioning has become dominant in perpetual futures markets.

Overall, the XRP derivatives market data points to widespread long liquidations, with long positions being liquidated far more heavily than short positions.

Spot Investors Stay Calm

Meanwhile, spot investors have remained resilient. CryptoQuant noted that Binance’s XRP spot reserves fell just 0.35% week over week. That suggests little XRP has moved onto exchanges for immediate selling. Instead, tokens have been withdrawn from exchanges.

Stable exchange reserves contrast sharply with the heavy futures liquidations. This suggests long-term holders have largely avoided panic selling despite XRP’s recent weakness.

This divergence between the derivatives and spot markets is healthier than a scenario in which leveraged traders and spot holders sell simultaneously.

Attention Turns to the Next Move

Historically, major volatility has often followed deeply negative funding rates combined with exhausted long liquidations. Once excessive leverage has been flushed out, the market is in a better position for its next move. The focus now is on whether open interest begins to recover.

CryptoQuant also pointed to Ripple’s recent RLUSD expansion into Japan through SBI VC Trade as a positive long-term development. However, it said near-term price action will continue to be driven primarily by derivatives activity.