- Binance’s XRP reserves fell below 2.61 billion XRP in early July, marking their lowest level since February.
- XRP futures open interest has remained relatively stable around $2.5 billion since February despite the prolonged price weakness.
- XRP price attempts to hold its support above $1 after a major breakout from a falling wedge pattern on the daily time frame chart.
XRP, the native cryptocurrency of the XRP ledger, slipped roughly 0.4% on Wednesday, currently trading at $1.1. This downtick reflects a short-term halt following yesterday’s recovery in the broader crypto market, bolstered by a cooler-than-expected U.S. inflation report. While no other major catalysts are uplifting the digital asset market today, XRP price retains its recent breakout from the key resistance trendline amid a steady outflow of this asset from Binance exchange.
Binance XRP Reserves Hit Multi-Month Low as Traders Hold Futures Positions
According to CryptoQuant analyst Arab Chain, Binance’s XRP reserves dipped below 2.61 billion tokens at the beginning of July, marking the lowest levels since February. The holdings have remained steady since then, with no new purchases being made to replenish the stockpile, as available tokens have been gradually removed from the exchange over the past few months.
XRP’s trading price followed the trend, dropping from $1.12 to $1.06. The low reserves had no immediate impact, reinforcing the notion that other factors such as total liquidity, trade volume, and investor sentiment still have more influence on the asset’s movement than supply changes.
Visuals tracked from mid-2025 into July 2026 show that reserves initially declined sharply in late 2025, and then remained at lower levels through the first half of 2026. Price action mirrored a broader decline with brief rallies that ultimately faded.
If this contraction continues alongside a rise in demand, it may begin to alleviate the pressure of potential sales in the coming months.
Interestingly, the open interest tied to XRP’s future contract shows a prolonged sideways trend around the $2.5 billion mark since February. Despite the sharp price decline, this resilience suggests that leverage traders have not rushed to unwind their open positions in the market and maintain steady trading activity in XRP’s derivative products.
However, raw open interest alone does not reveal the directional bias of traders — whether they are predominantly long or short. One tool for measuring that is the OI-weighted funding rate, which helps determine the sentiment in the market by letting you know who is funding the other side of the order.
CoinGlass data shows that the funding rate for OI is currently +0.0088%. This modestly positive reading suggests a slight bullish tilt, with long positions paying shorts. While spot prices remain under pressure, derivative market data indicates continued long conviction among futures traders.
XRP Price at a Key Support Retest Before the Next Dynamic Move
During the early July recovery in XRP price, the buyers gave a bullish breakout from the resistance trendline of a falling wedge pattern at $1.13. Since last year’s July, the XRP coin traded strictly within the two converging trendlines of this pattern, where its dynamic resistance and support carried a steady correction trend.
Therefore, the aforementioned breakout signals an early shift in market sentiment and potential recovery ahead.
That said, the broader market pullback has triggered an extended retest from XRP price to the wedge pattern breakout. If newly obtained support holds, the coin price could witness an accelerated recovery momentum and challenge the overhead resistance at $1.27 and $1.6.
An uptick in the daily RSI slope atthe 51 level indicates a neutral yet improving market sentiment.
On the contrary, the Ripple crypto price is positioned below the daily exponential moving averages of 50, 100, and 200, indicating an intact bearish trend. Each of these slopes could act as a potential resistance against buyers and restrict recovery attempts.
Therefore, if the current retest drops within the wedge pattern’s boundary again, the sellers could tighten their hold over the XRP price.
