Binance's Falling XRP Reserves Spark Accumulation Hopes

XRP's price has pulled back from its recent rally to $1.70, but on-chain data suggests a potentially positive trend for the token.

Binance's XRP reserves have fallen by around 500 million tokens since November 2025, reaching levels last seen in early 2024.

This decline could be a sign of long-term accumulation, with investors moving tokens to private wallets, according to CryptoQuant analyst darkfost. The falling Binance reserves also coincide with the launch of spot XRP ETFs in November and December 2025, which may have bought XRP from the market.

In February 2024, a similar setup saw XRP climb by over 50% after a decline in exchange supply. If this pattern repeats, XRP could see another strong move of 50% from its current price level, potentially reaching $2.50. However, darkfost notes that the trend matters more for the long term than immediate price action.