XRP Exchange Withdrawals Hit Five Year High

XRP holders are pulling their tokens off exchanges at the highest rate in more than five years. Data shows that withdrawal transactions spiked significantly by the end of July, while deposits dropped to matching five year lows. On Binance, the seven day withdrawal share surged to over 55 percent, creating a wide gap between coins leaving and entering the platform.

This trend coincides with XRP retesting a crucial multi year support range between one dollar and one dollar and five cents. The altcoin has faced heavy selling pressure this year and is down over forty percent year to date, trading around one dollar and six cents recently. However, the surge in withdrawals suggests that buyers are stepping in to accumulate tokens at these lower levels.

At the same time, total XRP reserves on Binance have dropped from over two point seven billion tokens in May down to about two point six billion tokens. When exchange reserves decrease alongside high withdrawal rates, it usually means that selling pressure is slowing down. Traders will now watch to see if this shift in supply helps XRP find a solid market bottom and stage a recovery.