XRP’s recent sell-off, which saw the token dip below the $2 mark, coincided with a sharp decline in exchange reserves over the past week.
On June 22, the total XRP held on Binance stood at 2.238 billion tokens, down approximately 614 million from the 2.852 billion recorded just days earlier on June 16, according to on-chain data from CryptoQuant retrieved by Finbold on June 23.
With XRP trading around $2 as of press time, the amount that exited exchange reserves translates to around $1.228 billion.
This significant outflow suggests that investors may be moving their XRP to private wallets or cold storage, a trend often seen as bullish.
Such withdrawals are typically interpreted as accumulation by long-term holders or institutions, which could reduce near-term selling pressure, with fewer tokens on exchanges, liquidity tightens, potentially amplifying price moves if demand rises.
This shift comes as XRP endured a major sell-off that was in line with broader market sentiment. Notably, over the weekend, markets were rattled by rising geopolitical tensions in the Middle East, particularly following U.S. strikes on Iranian nuclear facilities.
These events added to the uncertainty already fueled by the escalating conflict between Tehran and Israel.
Beyond the geopolitical headwinds and market-wide bearishness, XRP is also influenced by several internal factors, including expectations surrounding the resolution of the Ripple vs. SEC lawsuit and speculation over the potential approval of a U.S.-listed spot XRP ETF.
XRP price analysis
At press time, XRP was trading at $2.03, up over 3% in the last 24 hours. However, the token remains down roughly 10% on the weekly chart.
Despite the recent intraday gains, market sentiment around XRP remains largely bearish. Technically, the token is trading below its 50-day simple moving average (SMA) of $2.29, indicating short-term weakness.
On the upside, it remains above its 200-day SMA of $1.84, suggesting the longer-term trend is still moderately bullish. Meanwhile, the Relative Strength Index (RSI) sits at 36.26, pointing to possible upside if buying momentum increases.
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