TL;DR

XRP reserves jump to 3.58B on Binance, signaling increased selling risk and weaker market demand. Whale deposits fall below 30-day average, offering temporary relief from intense selling pressure. Futures open interest remains high at $7.43B, hinting at looming volatility if positions unwind.

Binance Reserves Reach New High

XRP reserves on Binance have climbed to 3.58 billion tokens, marking a 12-month peak. This rise comes as traders move more XRP onto the exchange, often a signal of potential selling activity.

At the same time, the price of XRP dropped below $2.74, a key level that had previously held firm. A breakdown below this point shows weakness in buying interest and may reflect a shift in short-term sentiment. Similar reserve spikes in past months have been followed by either sideways movement or a decline in price.

$XRP exchange reserves on Binance just spiked to 1-year highs, signaling heavy selling pressure.

The breakdown from $2.74 confirms bearish momentum, with recovery to $3+ looking unlikely in the near term.

Caution ahead this September #XRP pic.twitter.com/XuaRsyJ95U

Whale Activity Slows but Pressure Remains

On September 5, large XRP transfers to Binance dropped to 1,588 tokens. This is well below the 30-day average of 4,715 XRP. A decline in whale transfers may ease some immediate sell pressure, at least in the short term.

Source: CryptoQuant Despite the daily drop, whale activity over the past month remains higher than usual. This means large holders may have already moved their tokens in advance. XRP moved from $2.74 to $2.85 following the lower whale inflow, showing a modest 24-hour rise.

In addition, XRP futures open interest is now at $7.43 billion. This follows a recent high of $7.59 billion. The spot price stood at $2.80 at the same time. High open interest during a declining or flat price period suggests many positions remain active.

Source: Coinglass This setup may lead to sharp price moves if those positions begin to unwind. A build-up of leverage can increase volatility, especially when the asset moves away from its current range. Traders are watching closely for signs of stronger moves in either direction.

Traders Focus on Key Support and Resistance

XRP’s price was at $2.81 at press time, with a 24-hour decline of 1%. Over the past week, the price has gone down slightly as well. Analysts are watching the $2.85 level for potential short-term momentum. Crypto analyst EGRAG CRYPTO noted that a close above $2.85 could open a path to $2.90, $2.95, and possibly $3.13.

However, if the asset fails to hold $2.85, a drop toward $2.65 remains possible. With exchange reserves at yearly highs and whale flows mixed, traders are watching closely. Price action in the coming days may offer clearer direction.