Exchange reserves hit a 5-month low, yet XRP remains stuck near $1.10 as sellers keep the upper hand. Lower supply hasn't translated into demand.

The Reserve Drop That Didn't Matter

Binance's XRP holdings just hit their lowest point in five months, falling to 2.61 billion coins. In traditional market logic, when an exchange reduces its stash of an asset, it can signal bullish momentum—fewer coins available to sell means potentially tighter supply and room for price appreciation. But XRP didn't get that memo. The coin is currently trading at $1.1093, with no meaningful recovery in sight.

Sellers Still in Control

The reason is straightforward: supply isn't the constraint right now. Demand is. XRP's Cumulative Volume Delta (CVD)—a measure of whether buy or sell orders are dominating—stood at approximately -6.93 million, meaning sellers continue to overwhelm buyers. Even with Binance trimming reserves, the selling pressure hasn't dried up enough to flip sentiment.

The Bigger Picture

XRP is down more than 70% from its all-time high of $3.60, and reserve depletion alone won't fix that kind of damage. Exchange movements matter—they can signal whale behavior or institutional positioning—but they're just one piece of the puzzle. What investors should watch is whether that CVD flips positive. Until buy orders start outpacing sells, lower supply is just a sideshow.