As of October 30, Binance has seen its $XRP reserve fall to 2.47 billion $XRP from the 2.69 billion $XRP it recorded on October 28, marking a sharp decline in its holdings in just two days.
This signals rapid accumulation from traders as it marks a decrease of about 8.18% in the amount of $XRP available for sale on Binance, with over 220 million $XRP withdrawn in just a two-day period.
While decreases in exchange reserves simply mean a reduction in the amount of $XRP readily available for trading, it potentially reduces immediate selling pressure if demand remains steady, thereby providing a bullish outlook for the token.
$XRP‘s falling supply extends to other exchanges
Further data shows that the decrease in the $XRP exchange reserve on Binance has coincided with falling $XRP balances on several other major crypto exchanges, including Bybit and Bithumb.
The data shows that reductions seen on these exchanges were smaller compared to Binance, as Bybit’s $XRP reserves dropped from 306 million to 286 million $XRP during the same period.
Bithumb, on the other hand, also recorded a decrease of 10 million $XRP, with its reserves falling from 1.847 billion to 1.837 billion $XRP, down approximately 0.54% during the same days.
While this indicates a broader reduction in exchange-held supply and $XRP has remained volatile despite the shrinking supply, it is important to note that lower balances do not always mean that investors are accumulating $XRP, which could be the reason $XRP has yet to react to the trend.
