- 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 above $1 support 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 broader market recovery, bolstered by a cooler-than-expected U.S. inflation report. While no major catalysts are driving the digital asset market today, XRP price retains its recent breakout above the key resistance trendline amid a steady XRP outflow from the 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, projecting no major inflows being made to replenish the supply.
XRP’s price trajectory followed a similar trend and dropped to the current trading value of $1.1. 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.
Historical data 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 reduce potential selling pressure in the spot market.
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, and therefore analysts often refer to funding rates to determine whether longs or shorts are paying a premium.
CoinGlass data shows that the OI-weighted funding rate currently stands at +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 and experienced 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 in XRP coin price. If the newly obtained support holds as per our XRP prediction, the altcoin price could witness an accelerated recovery momentum and challenge the overhead resistance at $1.27 and $1.6.
An uptick in the daily relative strength index (RSI) indicator at 51 suggests 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 moving averages 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.
