- XRP is up 22% from $1.85 support, trading at $2.18 with $3.81 billion in daily trading volume.
- Binance XRP reserves plummeted drastically to 2.7 billion, indicating heavy traction from long-term investors.
- Inflows of $21 million in ETFs, coupled with the shrinking market supply, could lead to the asset surging towards $3.
XRP is once again showing a familiar pattern, gaining renewed attention after a 22% move upward that closely resembles past bullish setups. The token recently bounced from the important $1.85 support zone, the same level that previously marked several strong recoveries.
Currently, the cryptocurrency is trading at $2.19 with support from a 24-hour trading volume of $3.81 billion, a market cap of $131.82 billion, and a market dominance of 4.25%. In the last day, the price has declined by 1.21%, although market analysts believe that the outlook is intact.
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Binance XRP Reserves Hit New Low
Notably, crypto analyst CryptosRus has pointed out the significant decline in Binance XRP reserves and found that market buyers are constantly taking in the remaining supply in the market. Interestingly, reserves are already at approximately 2.7 billion XRP, which is much lower than the reserves in early October.
The pattern of having long periods of consolidation and then breaking out above critical moving averages has resulted in strong pushes in the prices in the past. It can also be seen that there has been a significant decline in the supply, due to which there is an increase in the spot XRP ETF inflows, which stood above $21 million on Wednesday.
XRP Eyes $2.60–$2.75 Resistance Zone
If Binance balances dip below 2.6 billion XRP, even moderate buying activity could push the altcoin higher, bringing $2.60 to $2.75 back into sight. Analysts believe that as ETF flows grow above $50 million per week, concurrent with exchange supply at 2.5 billion, prices could increase towards $3 sooner than many believe.
Binance has seen 310 million coins leave its platform in just seven weeks, and there has not been any shift in the direction of the outflows. With the reduction in supply, the asset could possibly begin another significant phase, which follows the early stages of its significant price rallies in the past.
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