XRP Outflows Surge, Reaching 320M as Binance Leads the Charge

The XRP token has seen a significant spike in outflows from exchanges, with more than 320 million tokens leaving exchanges in a single day. This surge in outflows is reminiscent of the August rally setup, where a similar spike led to a 42% price increase for XRP. Binance, the largest exchange, has led the move, with Coinbase, Upbit, Bybit, and Bitget also showing heavy outflows. According to CryptoQuant, Binance's XRP reserves fell by around 57 million tokens in three days, erasing more than half of a two-week build-up. This decline in reserves could lead to fewer tokens being available for spot trading, potentially easing selling pressure. Analysts are cautious, noting that historically, October has been a challenging month for XRP, with only five out of the last 13 Octobers finishing green for the token. XRP was trading at around $1.50 at the time of writing, having gained approximately 1% on a 24-hour basis and 16% in the last 14 days. However, it is still underperforming on an annual basis, having dipped by more than 47% in the past 12 months. Analyst Xaif Crypto noted that the last jump of this size, which came in August, saw the price of XRP climb from $1.05 to $1.50. Amr Taha tracked the Binance side, pointing out that the exchange's XRP reserve rose from around 2.60 billion to 2.70 billion tokens between September 13 and 27, then fell to 2.647 billion by September 30, a decline of around 2.1% in three days. CryptoOnChain, another CryptoQuant author, focused on leverage, which they say has 'reduced faster than price has fallen.' They reported that Binance XRP open interest, the value of open futures positions, fell to $521.5 million on September 29, down 15.3% from a six-month high of $616.1 million a week earlier. Long liquidations averaged $3.72 million a day from September 24 to 29, about 2.6 times the six-month daily average. Funding rates also halved from 0.010 to 0.005, while leverage remains above its six-month mean of 0.169. One explanation CryptoOnChain floated for this is that traders trimmed their leveraged longs before the quarter-end instead of selling spot. This, they said, creates conditions that historically preceded range-bound trading, since positioning is resetting while exchange supply edges higher. The analyst explained, 'This creates conditions that historically preceded range-bound trading, since positioning is resetting while exchange supply edges higher.'