XRP wallet activity has moved clearly toward withdrawals, pointing to a growing preference among investors for self-custody rather than keeping tokens on centralized exchanges. The pattern aligns with a broader trend across cryptocurrency markets, where exchange reserve levels are widely tracked as an on-chain indicator of potential selling pressure.

Over the past week, withdrawals exceeded deposits across major trading platforms. The total number of wallets fell by roughly 13,026 during that period. Coinbase recorded the largest shift, at -8,900, followed by Binance at -2,626 and Crypto.com at -1,500.

Before the latest withdrawal trend, large increases in deposits were recorded in July and again in October 2025. In both cases, those deposit waves preceded declines of more than 65% in Ripple's XRP price. At press time, XRP was trading at $1.14, a level the report associated with easing seller pressure on the asset.

Exchange reserves, netflows, derivatives positioning, and broader market liquidity remain important indicators for assessing whether a decline in exchange supply can support sustained price strength. However, the current withdrawals may also reflect temporary positioning unless sentiment, demand, and capital flows improve across spot and derivatives markets at the same time.

Exchange balances decline, but spot accumulation remains uncertain

Although continued withdrawals are reducing the amount of XRP held on exchanges, broader market data has not yet shown convincing evidence of sustained spot accumulation. At press time, Binance's XRP balance stood at 2.6 billion tokens, down steadily from above 3.1 billion.

That decline reduces the amount of XRP immediately available from potential sellers. At the same time, inflows from whales have remained subdued. Transfers directed to exchanges have fallen to roughly 140 XRP after major spikes earlier this year.

Large deposit bands have also weakened, suggesting reduced distribution pressure. However, the 90-day Spot Taker CVD has returned to neutral after briefly becoming buyer-dominant in May. This indicates that aggressive spot buyers have not yet regained control.

Until buying pressure strengthens, shrinking exchange supply alone is unlikely to sustain XRP's recovery.

Derivatives data shows steady positioning

While spot demand remains limited, broader positioning continues to offer additional context for XRP's recovery attempt. AMBCrypto recently reported that large holders continued accumulating during recent exchange outflows, while long-term holders remained profitable without accelerating distribution.

Against that backdrop, concentrated holdings among top wallets remain an important area to monitor. Derivatives positioning has also remained constructive. Open Interest, which measures the total value of outstanding derivative contracts not yet settled, has held steady at $2.5 billion, while funding rates have fluctuated between neutral and mildly positive levels, according to Coinglass.

Taken together, these signals point to cautious conviction rather than speculative excess. XRP withdrawals continue to tighten exchange supply, but spot demand remains too weak to confirm a sustained recovery. Whale accumulation supports a constructive backdrop, though stronger spot buying would still be needed for further upside.