XRP (XRP) Binance Inflows Drop to Record 3.6M Monthly

XRP News

XRP (XRP) is entering August with a record-low Binance inflow signal, after monthly exchange deposits fell to roughly 3.6 million tokens and the token closed July up more than 3.8%. The July advance ended a two-month losing streak for the large-cap Altcoin, although it remained smaller than gains in Bitcoin, which added about 9%, and Ethereum, which climbed around 20%. More important for the current structure, exchange-flow data shows supply moving away from trading venues rather than toward them. Centralized venues, unlike automated-market-maker pools, need deposits before selling. The recorded drop in Binance inflows suggests holders are less willing to move tokens into immediate sell-side reach, which often points to exhaustion among short-term sellers. In simple terms, fewer coins are being deposited where they can be sold quickly, reducing the readily available sell float. The data does not prove that buyers are accumulating, because inflow counts can fall when holders leave assets in self-custody or move them through other channels. Even so, a sustained deposit decline can help price find support above the important $1 area, particularly when it persists across weeks rather than a single holiday-thin session. The July improvement also came despite a broader bear-market backdrop for many large tokens, making the relative stability of XRP above $1 a level traders are likely to monitor through August. The key question is whether weaker selling pressure becomes a durable base or merely a seasonal pause before another test of lower ranges. For now, the on-chain signal is defensive rather than aggressively bullish: a clear demand catalyst has not yet appeared. That distinction matters because monthly performance can be distorted by thin summer liquidity, while exchange-flow changes tend to reflect actual holder behavior. If the record-low inflow pattern persists, it would suggest that the July green close was not simply a technical bounce, but a period in which available selling inventory declined.

A separate on-chain reading reinforces the same behavioral shift, but from the withdrawal side. During the seven days ended July 31, Binance withdrawals represented 55.6% of XRP transaction counts, the highest such share since February 2021. Across centralized venues, withdrawals made up about 54% of activity, while Binance deposits slipped to 44.3% and the market-wide deposit ratio fell to 45.95%, both multi-year lows. The metric tracks transaction counts rather than token volume or net flows, so it should not be treated as direct proof of accumulation. It does, however, show that users are more often moving XRP off trading venues than onto them, a pattern consistent with holding rather than immediate sale. This structural change could matter if spot demand improves, because thinner exchange balances can amplify price moves when buyers return. The demand side, however, remains subdued. Net creation for U.S.-listed spot XRP funds totaled about $19.6 million across July’s 21 trading sessions, with zero flows on 11 days and outflows on July 1 and July 8. That is a weak institutional signal for an all-time-high recovery narrative and suggests regulated fund desks have not yet become a marginal buyer. Historical monthly data shows August is XRP’s flattest period, with an average return of just 0.43% and four consecutive red closes, adding another obstacle for the broader altcoin setup. The withdrawal share is especially notable because it extends beyond a single venue, reducing the chance that the move reflects one large custodial rebalance. The withdrawal increase also coincides with a month in which XRP outperformed its own recent trend but lagged the largest crypto assets, meaning the on-chain improvement is not yet backed by strong relative strength. If August volume remains thin, the market may need a fresh catalyst to absorb any coins that do return to exchanges. Still, without stronger fund inflows, on-chain restraint alone may only slow downside rather than drive a durable rally.

COINOTAG’s proprietary 42-indicator composite S/R scoring engine shows XRP trading near $1.06 after a 2.26% daily decline, with the $1.0556 support rated 62/100, driven by Bollinger Lower and Donchian Lower confluence. The nearest resistance at $1.0963 scores 90/100, reflecting EMA 20 and ATR Upper pressure, making a sustained break above it the first bullish confirmation. Derivatives positioning is crowded long: funding is 0.0033%, open interest is $615 million, and accounts are 75.8% long, a 3.14 long-short ratio. With Fear and Greed at 25, extreme fear can fuel relief rallies, but the bearish MACD and downtrend favor selling strength unless $1.0556 holds. A daily close below that support would invalidate the base-case thesis.