XRP is once again trading at a critical technical level, with the cryptocurrency hovering around $1.10 after a sharp decline erased much of its mid-June recovery. While recent price action points to growing bearish pressure, a separate on-chain trend is presenting a more complex picture.
Data showing sustained XRP withdrawals from Binance suggests investors may be moving assets away from exchanges despite weakening market sentiment.
The combination of falling prices and rising exchange outflows has created a notable divergence that traders are closely monitoring.
XRP Retests Critical Support
From a technical perspective, XRP remains under pressure. After climbing above $1.28 in late May, the token experienced a steep correction that pushed prices toward the $1.05-$1.06 range in early June. Buyers briefly regained control, driving XRP back to approximately $1.28 on June 16, but the rally failed to challenge previous highs.
That failure created a lower high, a pattern often associated with weakening momentum and the potential for further downside.
The latest decline accelerated on June 23, when XRP dropped from roughly $1.1250 to an intraday low near $1.0937 before recovering slightly. At around $1.10, the asset is now testing the same support zone that halted selling earlier this month.
Several technical indicators reinforce the cautious outlook:
- XRP is revisiting support for the second time in less than three weeks.
- The Relative Strength Index (RSI) sits near 35 on the four-hour chart.
- No confirmed bullish crossover has emerged.
- Trading volume remains moderate rather than showing panic-driven capitulation.
A decisive break below the $1.09-$1.10 region could increase downside risks, while a successful defense may encourage short-term buyers to re-enter the market.
Binance Outflows Hit New Peak
According to CryptoQuant data, XRP withdrawals from Binance exceeded deposits for seven consecutive days. The seven-day withdrawal share reached 53.8% on June 23, marking its highest level since June 2024. During the same period, deposit activity declined to 46.1%, the lowest reading recorded in the past year.
Importantly, the metric tracks transaction activity rather than dollar value. Although it does not measure the exact amount of capital moving, it offers insight into investor behavior and market positioning.
The sustained imbalance suggests that more users are choosing to move XRP away from Binance instead of transferring coins onto the exchange.
Supply Trends Challenge Bearish Sentiment
Exchange reserve data provides additional context. Binance-held XRP reserves peaked near 3.25 billion tokens during mid-2025. Since then, balances have gradually declined to approximately 2.69 billion XRP.
This steady reduction is significant because exchange reserves often represent liquid supply available for immediate trading. Lower reserves can reduce potential selling pressure if demand remains stable or improves.
Notably, reserves did not increase during XRP’s rebound toward $1.28 earlier in June. That suggests investors were not rushing to send coins back to Binance during the recovery phase.
The broader picture presents two competing narratives. Price action remains weak, and technical indicators continue to favor caution. At the same time, shrinking exchange reserves and a week of withdrawal dominance suggest many holders are opting for self-custody rather than preparing to sell.
For now, the market’s next major clue may come from the $1.09-$1.10 support zone. If XRP maintains that level while exchange balances continue to fall, the supply dynamics could eventually challenge the current bearish trend. Until then, traders are watching whether on-chain conviction can overcome technical weakness.
