XRP Supply Shock? Billions Leave Binance But Price Struggles

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<a href="https://bbg-news.com/xrp-usd/">XRP</a> Supply Shock? Billions Leave <a href="https://thbusd.com/bnb-usd/">Binance</a> But Price Struggles

Over the past year, a significant amount of XRP – worth billions of dollars – has been withdrawn from Binance. This major change in where XRP is held is being noticed by many in the crypto world. Analysis of blockchain data shows some familiar trends emerging, even as XRP’s price remains under pressure.

XRP Supply Drops 45% on Binance

Binance has significantly reduced its XRP holdings over the past year, with a decrease of almost 45%. Analyst Niels reports the value of these holdings fell from $10.16 billion to $5.55 billion, indicating a large movement of XRP from the exchange to individual user wallets.

This trend indicates that fewer people are planning to sell their holdings soon. The consistent decrease in cryptocurrency exchange balances could mean more people are choosing to hold onto their coins for the long term. As Niels pointed out,

Something big is happening with $XRP supply.

Binance alone has seen its XRP reserves drop almost 45% in one year.

The amount of cryptocurrency on exchanges has dropped significantly, from $10.16 billion to $5.55 billion. This indicates a large number of coins are being transferred to long-term storage, suggesting people are holding onto them rather than trading.

Less supply on exchanges usually means one…

— Niels (@Web3Niels) January 20, 2026

Glassnode’s on-chain data suggests XRP is currently following a pattern similar to what it experienced in early 2022. Back then, the price fell from $0.78 to under $0.30 over a few months. Now, recent data indicates that newer investors are purchasing XRP at prices lower than those paid by long-term holders.

Glassnode noted,

“Psychological pressure on top buyers continues to build over time.”

This situation happens when people who recently bought an asset are making a profit, but those who’ve held it longer are facing losses. If prices don’t go up, some of those long-term investors might decide to sell.

According to Glassnode, whenever the price of Bitcoin falls to around $2, a significant number of traders experience losses. Each time this price level is tested, weekly losses range from $500 million to $1.2 billion, making it a common point for selling.

Price Slides as Volume Declines

XRP briefly hit a high of over $2.40 in January, but has since dropped in value. It fell below the $2 mark on Monday, reaching as low as $1.84 before bouncing back to around $1.90. According to data from CoinGecko, XRP’s price has decreased by more than 11% over the past week.

Analyst Steph Is Crypto wrote,

“$XRP price weakness is happening on declining volume — just like 2021–2022.”

When trading volume decreases during a price decline, it often signals weakening buyer interest, potentially causing the downtrend to continue or worsen.

XRP ETFs based in the US experienced their biggest drop in investments this week, as we previously noted. The data indicates a significant decrease in investor interest, with more money leaving the market likely due to increased global concerns and economic instability.

Compression Phase May Precede a Move

Crypto analyst Egrag Crypto noticed something interesting in the XRP/BTC chart: the price movement is currently very squeezed together, and the moving averages are close together as well. This ‘compression’ often means a big price move is coming once the market decides which way to go, as Egrag explained.

“This is not noise. This is structure tightening.”

XRP’s price is currently fluctuating between a defined support and resistance level, forming a pattern that suggests potential price increases. While not currently rising steadily, this situation could indicate that buyers are starting to accumulate XRP after a recent drop in price.

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2026-01-21 15:56