XRP Bulls Emerge as Inflows Plummet to Record Lows

XRP has flashed two bullish on-chain signals heading into August, but its historically flat month may temper expectations.

The token gained over 3.8% in July, snapping a two-month losing streak, and traded above $1. However, it trailed other large caps, with Bitcoin adding about 9% and Ethereum around 20%.

Binance inflows fell to an all-time low of 3.6 million XRP in July, according to analyst Darkfost. This marks the lowest monthly inflow ever recorded, suggesting that XRP holders are showing little willingness to move tokens onto exchanges for sale and exhausting selling pressure.

The reduced pressure could help XRP establish stronger price support above $1, but what remains to be seen is whether a genuine rebound in demand will follow this lull on the sell side. A condition necessary to spark a sustainable bullish trend is that of a rebound in demand, according to Darkfost.

Meanwhile, another on-chain analyst reported a sharp increase in XRP withdrawals from exchanges. Withdrawal transactions accounted for 55.6% of XRP activity on Binance over the past seven days as of July 31, the highest share since February 2021.