XRP Exchange Reserves Plunge to Six-Month Lows Amid Bullish Technical Formation

Key Highlights

• XRP currently trades around $1.11, posting gains of approximately 4% over 24 hours and 5% weekly
• XRP reserves on Binance have declined to roughly 2.61 billion tokens, marking the lowest point since February 2026
• Futures open interest for XRP sits 33% beneath its peak of $2.4 billion recorded in July 2025
• Daily chart reveals an inverse head and shoulders formation suggesting potential 20% upside move if critical neckline resistance breaks
• Critical resistance zone positioned at $1.12–$1.15; successful breach could propel prices toward $1.30–$1.45 range

XRP has climbed to approximately $1.11 following a 4% surge over the last day. This upward movement comes alongside a broader cryptocurrency market rebound triggered by milder-than-anticipated U.S. inflation figures for June.

XRP Price

The inflation report altered interest rate projections considerably. Market participants now assign reduced probability to a 50-basis-point rate increase, with several experts suggesting the Federal Reserve might postpone its next policy adjustment to monitor whether inflation continues its trajectory toward the 2% objective.

Alternative cryptocurrencies including Ethereum and Hyperliquid spearheaded the initial market bounce. Traders view XRP and Solana as potential follow-through opportunities should positive market sentiment persist.

Technical analyst Ali Charts highlighted a significant indicator via social media, observing that XRP has triggered a monthly TD Sequential buy signal — a technical formation traders frequently monitor for possible trend reversals.

Regarding exchange dynamics, CryptoQuant analyst Arab Chain documented that Binance’s XRP inventory dropped to approximately 2.61 billion tokens — representing the lowest level observed since February 2026. Token withdrawals from exchanges typically indicate accumulation patterns among holders.

Demand Indicators Remain Subdued

Notwithstanding the positive on-chain metric, Binance’s CVD Confirmation Score registers at negative 6.93 million. This indicates that selling pressure has dominated order execution since XRP was trading above the $2.00 threshold earlier in the year.

Futures open interest for XRP continues to lag 33% below its historical peak of $2.4 billion established in July 2025. Diminished open interest reflects reduced trader participation, potentially constraining the magnitude of price movements in either direction.

Santiment’s ETF tracking data reveals net withdrawals totaling $6 million from XRP-associated investment products during the previous week. Daily active wallet addresses experienced a temporary increase in early July but have subsequently retreated.

Exchange inflow velocity has also begun moderating. This deceleration could indicate that substantial holders are anticipating elevated price levels before distributing holdings, presenting a potential headwind for near-term appreciation.

Chart Analysis

XRP’s daily timeframe displays a constructive inverse head and shoulders configuration. This classical bullish pattern forecasts approximately 20% appreciation should price action successfully penetrate above the neckline resistance, potentially driving XRP toward the $1.45 level.

Source: TradingView

The Relative Strength Index has pushed above its signal line, indicating momentum may be transitioning in favor of buyers. Near-term resistance is concentrated between $1.12 and $1.15, zones where prior rallies encountered selling pressure.

Should buyers defend present support levels and overcome $1.15 with substantial volume, subsequent price objectives emerge at $1.30 to $1.40. Conversely, a daily close beneath $1.06 would compromise the bullish structure and potentially trigger decline toward $0.95–$1.00.

XRP still trades roughly 70% below its historical peak of $3.65.

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