What to Know CryptoQuant analyst Darkfost reported Binance XRP inflows reached record lows, indicating weakening selling pressure while holders maintained positions above $1. Historical chart
CryptoQuant analyst Darkfost has reported that XRP inflows to Binance have fallen to their lowest level on record, signaling that selling pressure among holders is fading. According to Darkfost, the 30-day average monthly inflow has declined to approximately 3.6 million XRP, marking the weakest reading ever recorded by CryptoQuant. The data also coincides with XRP maintaining support above the closely watched $1 price level despite its prolonged correction.
According to the analyst, exchange inflows provide insight into investor behavior because coins transferred to trading platforms are often intended for sale. Consequently, falling inflows suggest fewer holders are preparing to sell their XRP. Although reduced exchange activity does not guarantee higher prices, it often reflects declining downside pressure across the market.
Darkfost noted that XRP has declined more than 72% from its recent peak of $3.66, yet the latest on-chain data indicates many investors have retained their holdings instead of sending them to Binance, suggesting the market is entering a phase of growing seller exhaustion.
Also Read: Coinbase Stock Falls as Weak Trading Revenue Overshadows Stablecoin Growth
According to Darkfost, consolidation periods usually develop as ownership gradually shifts from sellers to buyers. That process often follows a major distribution phase, during which investors realize profits before selling activity begins to fade, and Binance’s latest XRP inflow data appears to reflect that transition.
The CryptoQuant chart shows several notable spikes in exchange inflows during previous market cycles, with elevated deposits appearing during the 2021 rally and again as XRP climbed toward its recent high of $3.66. Those periods likely reflected stronger profit-taking as investors transferred larger amounts of XRP onto Binance.
Source: CryptoQuant
Moreover, XRP has remained above the $1 threshold while exchange deposits have almost disappeared, suggesting holders are showing little urgency to liquidate their positions despite the earlier price decline.
Darkfost explained that weakening selling pressure could help XRP establish a more durable support base above $1. Nevertheless, reduced selling alone is unlikely to produce a sustained rally. Stronger buying demand must also emerge before the cryptocurrency can build lasting upward momentum.
Besides retail participation, institutional investors and large holders could play an important role if accumulation begins increasing while exchange inflows remain subdued. Such a combination would strengthen the market structure and improve conditions for a broader recovery.
Record-low XRP inflows to Binance indicate that selling pressure has weakened significantly as holders refrain from moving tokens onto exchanges. According to Darkfost, that shift strengthens XRP’s ability to maintain support above $1, although sustained price appreciation will ultimately depend on stronger buying demand returning to the market.
Also Read: Bitcoin Nears $65K as 500 Million USDT Moves From Binance to Tether Treasury
The post XRP Holds Above $1 as Record-Low Binance Inflows Signal Fading Selling Pressure appeared first on 36Crypto.
