XRP Shows Bullish Signs As Exchange Sell Pressure Fades

XRP finished July with a modest gain of 3.8 percent, breaking a two month losing streak. While the token lagged behind the broader gains seen in Bitcoin and Ethereum, fresh on chain data suggests that selling pressure is cooling off as we enter August.

Analysts have identified two key shifts in exchange behavior. First, monthly XRP inflows to Binance have hit a record low, suggesting that fewer holders are looking to offload their tokens. Second, exchange withdrawals have spiked to their highest levels since early 2021. More than 55 percent of recent activity on Binance consisted of withdrawals, indicating that investors are moving their holdings into self custody.

These signals point to exhaustion among sellers, which could help XRP build stronger support levels above the 1 dollar mark. However, traders should remain cautious. August is historically a quiet month for XRP, and institutional demand via spot ETFs has remained flat throughout the summer.

For a sustainable trend to take hold, the market needs more than just a lack of selling. It requires a clear return of buyer demand. Keep a close watch on whether volume picks up this month to see if these technical signs lead to a meaningful price movement.