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XRP Liquidity Plummets on Binance, Sparking Market Doubts

XRP Token Supply on Binance Falls Amid Long-Term Holding, Price Faces Key Support and Resistance Levels

  • The XRP token supply on Binance declined from about 3 billion to 2.71 billion tokens between mid-October and late November 2025.
  • This reduction coincides with increased self-custody and long-term holding behaviors among investors.
  • Despite regulatory clarity and new spot XRP ETF launches, XRP prices have fallen from $3.03 to around $2.17, influenced by Bitcoin’s dip and whale profit-taking.
  • Competition from stablecoins like Ripple’s RLUSD and XRP’s lack of decentralization and capped supply affect its market appeal.
  • Market focus remains on key price levels of $2.15 for support and $2.40-$2.50 for resistance amid weak altcoin momentum and upcoming Federal Reserve decisions.

Since mid-October 2025, the XRP token reserves on Binance have dropped from around 3 billion to approximately 2.71 billion as of November 27. This significant decrease suggests many holders are moving tokens off exchanges into self-custody wallets or adopting long-term holding strategies. XRP currently trades near $2.17, showing only about a 1% gain in 24 hours, down from a previous peak of $3.03 during the highest accumulation phase.

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The shrinking supply of XRP on exchanges has raised concerns linked to market pressure and trading sentiment shifts. The price decline partly resulted from Bitcoin’s drop in November and notable profit-taking by large holders following the resolution of the SEC lawsuit. These sell-offs occurred despite the introduction of spot XRP ETFs from providers such as Canary Capital, Franklin Templeton, Bitwise, and Grayscale, which have attracted institutional interest.

An analysis by CryptoQuant’s Darkfost highlighted that reduced tokens available on trading platforms alongside growing institutional demand could set the stage for further structured market phases. However, price support around $2.15 remains crucial, with resistance between $2.40 and $2.50 presenting key hurdles for upward momentum.

XRP faces additional challenges from stablecoins, including Ripple’s RLUSD, designed to provide banks with a stable payment alternative. Unlike Bitcoin, XRP lacks decentralization and a capped supply, factors that may limit its appeal as a store-of-value asset.

Current market conditions, including weak altcoin momentum before the December Federal Reserve meeting, contribute to cautious trading behavior. The interaction of XRP liquidity, competition from stablecoins, and the uncertain impact of ETFs create a complex environment for the token’s short-term prospects.

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