XRP is gradually being withdrawn from Binance, a trend that is starting to show in CryptoQuant’s exchange supply metrics. According to a CryptoQuant contributor known as Darkfost (X: @Darkfost_Coc), this pattern indicates renewed accumulation following a significant drawdown earlier this year.
In a note published on CryptoQuant, Darkfost highlighted the decline in Binance’s XRP “supply ratio” as a sign that some holders are choosing custody over immediate liquidity.
Binance Ratio Decreases as XRP Leaves the Platform
CryptoQuant’s analysis suggests that decreasing exchange reserves often indicate a readiness to sell, while increasing reserves signal withdrawals into private wallets for longer-term holding. Darkfost explained that the decline in Binance’s XRP supply ratio implies that investors are withdrawing their funds into private custody solutions.
The key data point mentioned in the note is the drop in Binance’s XRP supply ratio over the past ten days, with approximately 200 million XRP leaving the platform during this period. This reduction is seen as significant in terms of short-term flows.
Traders pay attention to exchange-specific ratios as they indicate the availability of coins for immediate selling. A decrease in balances typically means fewer coins are readily available for trading, suggesting a shift in market positioning.
CryptoQuant also noted that not all large transfers are organic, as exchanges may move funds for operational reasons. However, the transparency of public custody addresses on Binance allows for a clearer distinction between user-driven withdrawals and internal transfers.
Significance Amidst a 40% Decline
The note connects the withdrawal trend to the broader price context without making specific forecasts. With XRP experiencing a 40% correction since the start of the year, investors may be showing interest in accumulating at these lower levels for long-term holding.
Analysts often look for a combination of significant price corrections alongside a decrease in exchange-held supply to identify potential accumulation phases. Coins being moved off exchanges indicate a shift towards holding rather than immediate selling.
As of the latest update, XRP was trading at $1.4161.
Featured image created with DALL.E, chart from TradingView.com