XRP under pressure as Binance reserves climb
- XRP decline puts immense pressure on the 50-day EMA support amid a broader crypto market sell-off.
- The balance of XRP on Binance ticks up to 2.64 billion XRP from October lows near 2.60 billion, potentially propping up selling pressure.
- Technically, XRP's path of least resistance remains downward, weighed down by a bearish RSI and a MACD sell signal.
Ripple (XRP) sellers are gaining ground on Thursday, as the token slips below $1.40. Sell-side pressure remains intense in the broader crypto market, as seen with leading digital assets, including Bitcoin (BTC) currently below $83,000 and Ethereum (ETH), sliding below $2,600. Despite the correction, XRP retains a constructive technical outlook, with support provided by a key moving average cluster.
XRP exchange reserves expand amid muted ETF activity
The number of XRP balances on Binance exchange rose in the last few days to 2.64 billion XRP on Thursday, up from the October low of around 2.62 billion XRP. Sustained movement below the current 2.64-2.65 billion range would increase supply available for sale, potentially weighing on price action.
XRP spot ETFs continue to face erratic flows and muted activity. The ETFs remained muted on Wednesday after recording $3 million in outflows the day before. As demand for the remittance token takes a back seat, the path of least resistance will likely stay downward.
Nevertheless, cumulative inflows remain elevated at $1.79 billion, with total assets under management at $1.61 billion, underscoring institutional investors' long-term positive outlook on XRP.
Technical analysis: XRP sellers tighten grip
XRP edges lower below $1.40 as sell-side pressure deepens. Despite this week's correction, the remittance token still maintains a constructive near-term bias, holding above the 50-day Exponential Moving Average (EMA) at 1.39 and the 200-day EMA at $1.38.
The 100-day EMA at $1.34 and the SuperTrend line at $1.30 reinforce a layered demand area beneath spot, suggesting dips could attract buying interest despite the Moving Average Convergence Divergence (MACD) indicator slipping further below zero and the Relative Strength Index (RSI) easing to a neutral-to-soft 43 level.
On the downside, initial support lies at the 50-day EMA around $1.39, ahead of deeper structural cushions at the 200-day EMA at $1.38 and the 100-day EMA at $1.34, while the SuperTrend line at $1.30 marks a more distant bullish threshold. On the topside, the focus remains on the descending resistance trendline, with a first barrier near its break region around $1.64 and a stronger cap at the trendline origin near $1.70, where sustained clearance would open the door to a more impulsive bullish phase.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Ripple FAQs
Ripple is a payments company that specializes in cross-border remittance. The company does this by leveraging blockchain technology. RippleNet is a network used for payments transfer created by Ripple Labs Inc. and is open to financial institutions worldwide. The company also leverages the XRP token.
XRP is the native token of the decentralized blockchain XRPLedger. The token is used by Ripple Labs to facilitate transactions on the XRPLedger, helping financial institutions transfer value in a borderless manner. XRP therefore facilitates trustless and instant payments on the XRPLedger chain, helping financial firms save on the cost of transacting worldwide.
XRPLedger is based on a distributed ledger technology and the blockchain using XRP to power transactions. The ledger is different from other blockchains as it has a built-in inflammatory protocol that helps fight spam and distributed denial-of-service (DDOS) attacks. The XRPL is maintained by a peer-to-peer network known as the global XRP Ledger community.
XRP uses the interledger standard. This is a blockchain protocol that aids payments across different networks. For instance, XRP’s blockchain can connect the ledgers of two or more banks. This effectively removes intermediaries and the need for centralization in the system. XRP acts as the native token of the XRPLedger blockchain engineered by Jed McCaleb, Arthur Britto and David Schwartz.
Author
John Isige
FXStreet
John Isige is a seasoned cryptocurrency journalist and markets analyst committed to delivering high-quality, actionable insights tailored to traders, investors, and crypto enthusiasts. He enjoys deep dives into emerging Web3 tren
