According to a CryptoQuant indicator that fell to its lowest level since January 2025, the amount of XRP available for trading on the Binance exchange platform is increasing. This signal incr
According to a CryptoQuant indicator that fell to its lowest level since January 2025, the amount of XRP available for trading on the Binance exchange platform is increasing. This signal increases the risk of selling pressure, however it does not prove that holders have started to massively sell their tokens.
The Binance Scarcity Index for XRP dropped to -0.94, compared to 0.77 last July. Thus, it erased in a few months its highest level in two years. A negative value means that tokens are more easily available on the exchange compared to their historical levels.
This index does not allow immediate measurement of sales. It contributes to assessing the relative scarcity of XRP on Binance. Its drop specifies that more tokens can potentially feed sell orders if their owners decide to trade them.
Your 1st cryptos with BinanceThis link uses an affiliate program.Four main data points summarize this evolution :
This trend contrasts with what was observed during July. At that time, the drop in reserves had reduced immediately accessible supply, which would amplify a price increase in case of demand return.
The drop in the index does not mean that Binance holds more XRP than at the end of 2024. Indeed, the exchange’s reserves remain close to 2.6 billion tokens, compared to nearly 3.27 billion in November 2024. Thus, they have decreased by about 650 million XRP, or roughly 20%.
Such an apparent contradiction comes from the indicator’s calculation method. The Scarcity Index compares current availability to historical trends. A moderate inflow of tokens can therefore cause a strong fluctuation when the starting total stock has already significantly decreased.
Recent CryptoQuant statistics support this interpretation. Indeed, daily deposits on Binance exceeded their quarterly average by 663% during many sessions. However, reserves only changed by 0.22% compared to this same reference, to around 2.63 billion XRP.
A major part of incoming tokens seems to have quickly left the exchange or changed hands. This rotation phenomenon may correspond to arbitrage, market makers’ activity, or wallet transfers rather than a lasting accumulation on Binance.
Nevertheless, the significant availability of tokens creates a risk. Cryptos transferred to an exchange can be sold more easily than those kept in private wallets. If demand does not evolve at the same pace, this additional supply can limit price increases.
The second indicator reveals a moderate dominance of sellers. On Binance, the ratio between executed buys and sells is 0.94. A level below 1 means that aggressive sell orders exceed corresponding purchases.
However, this data alone is not enough to announce a correction. Sellers do not dominate with the same intensity on all platforms. Moreover, strong liquidity can facilitate the absorption of sales without triggering a significant drop, especially when buyers remain active.
Price behavior must therefore confirm the on-chain signal. A simultaneous rise in reserves, net deposits, and sell volumes could provide a stronger indication of a distribution phase.
On September 30, XRP trades around 1.49 dollars, after briefly reaching 1.56 dollars during the session. Thus, the token maintains a price change of nearly 10% over one month, despite the deterioration of its scarcity index.
This resistance shows that the market is currently absorbing the available supply. It may reflect sufficient spot demand, increased trader activity, or a simple repositioning after the moves observed during the summer.
The next signal will mainly depend on the evolution of reserves. Their sustained increase could confirm that XRP accumulates on Binance and could consolidate selling pressure. Conversely, a return of the index to positive accompanied by net withdrawals could reduce immediately tradable supply.
The level of -0.94 is therefore a warning, not a price forecast. It reveals a change in the circulation of tokens on Binance, without proving by itself that a massive sale or a drop in the XRP price is impending.
