XRP Supply on Binance Hits Multi-Year Low Amidst Renewed Investor Demand
The amount of XRP held on the cryptocurrency exchange Binance has fallen to a new multi-year low, a development that analysts suggest could signal a forthcoming price surge. This reduction in available supply on the world’s largest exchange by trading volume indicates a significant increase in investor demand, potentially easing selling pressure on the token.
Scarcity Index Surges to Highest Level Since 2022
The XRP Binance Scarcity Index, a metric designed to measure constraints on liquid supply on the exchange, has climbed to 2.1. This marks its highest point since 2022, reflecting a substantial tightening of XRP’s availability. After registering negative values throughout September and October 2026, the index experienced a sharp, multi-day ascent into strongly positive territory, representing one of its most significant upward movements in four years.
Exchange Reserves Plummet
In tandem with the rising scarcity index, the 30-day Simple Moving Average (SMA) of XRP reserves on Binance has also dropped to a new multi-year low. Data from CryptoQuant shows that XRP reserves on Binance currently stand at approximately 2,602,104,093 tokens. This is a notable decrease from the 3,293,564,370 tokens recorded 12 months prior. Historically, such a substantial reduction in tradeable XRP on Binance has often preceded periods of strong upward price momentum.
Price Performance and Analyst Outlook
Despite the declining supply on Binance, XRP’s price has experienced a selloff, depreciating by over 18% in the past month. At the time of reporting, the token was trading around $1.23, with a market capitalization of approximately $78.1 billion. Its 24-hour average trading volume also saw a decline of more than 19%, settling at $2.43 billion.
However, crypto analyst Ali Martinez remains optimistic, forecasting a potential bull rally towards $2.10. Martinez highlighted that a break above the resistance level at $1.60 would be a key indicator, potentially confirming a bullish pattern and bringing the higher price target into focus. The increasing scarcity of XRP on Binance is seen as a significant factor that could catalyze this bullish sentiment.
