Fresh on-chain data has brought renewed attention to XRP as exchange reserves continue to decline across major trading platforms. According to CoinCodex data, XRP is currently priced at $1.10.

Market analyst Xaif Crypto cited CryptoQuant data showing that Upbit's XRP holdings have fallen to 6.43 billion XRP — the exchange's lowest level since May. Meanwhile, Binance continues to hold approximately 200 million fewer XRP than it did at its March peak, indicating that the trend extends across multiple major platforms.

Exchange reserves measure the quantity of a token available for immediate trading. A sustained decline generally reflects investors transferring tokens into private wallets or long-term custody solutions rather than keeping them on exchanges for ready sale. This behavioral shift is frequently associated with reduced near-term selling pressure, since fewer tokens are positioned for quick liquidation. However, reserve data should be read alongside other indicators because exchange balances can also be affected by internal wallet management, custody changes, and transfers that do not necessarily reflect end-user selling intent.

Binance, the world's largest cryptocurrency exchange by trading volume, has maintained lower XRP balances throughout the year. Upbit is also a closely watched venue for XRP because South Korean exchanges often account for significant spot activity in the token. The tightening of liquid supply across both Upbit and Binance suggests that readily tradable XRP is becoming scarcer. As available supply contracts, any significant uptick in demand could exert a proportionally larger effect on price, given that buyers would be competing for a diminished pool of tokens.

CryptoQuant data also reveals a marked cooling in exchange activity. Binance deposits and withdrawals dropped from approximately 650,000 transactions in June to roughly 350,000 — a decline of nearly 46%. Reduced transfer volume often indicates fewer traders are actively moving coins between platforms and personal wallets. While this can reflect a generally quieter market, it may also suggest that investors are choosing to hold their positions rather than trade frequently.

The combination of shrinking reserves and declining transaction volume is what drew Xaif Crypto's attention. The analyst noted that a comparable on-chain configuration preceded XRP's October 2025 rally, during which falling exchange balances and easing selling pressure were followed by a substantial price advance.

Historical patterns alone cannot determine future outcomes. Broader market conditions, institutional demand, regulatory developments, and macroeconomic factors will all influence XRP's trajectory. Nevertheless, the current on-chain data indicates that liquid supply continues to contract.

This tightening supply backdrop has attracted additional scrutiny. Some veteran analysts have maintained that a broader technical breakout could eventually target $6.40, with longer-term projections extending higher should bullish momentum persist.

Separate reports point to reduced whale selling and growing activity on the XRP Ledger, including more than 1.4 million AI agent transactions. These developments suggest that network utility is expanding in parallel with shifts in market fundamentals.

For now, declining exchange reserves and cooling transfer activity remain among XRP's most closely monitored on-chain indicators. Market observers will likely continue comparing reserve trends with spot volume, large-holder flows, and XRP Ledger activity to assess whether reduced exchange supply is accompanied by durable demand.

Source: Coinpaper