Even though XRP has extended its October selloff into November 2026, on-chain data analysis reveals a strong demand from investors.
The XRX Binance Scarcity Index, a tool that measures liquid supply constraints on the largest cryptocurrency exchange by daily traded volume, has surged to 2.1, its highest level since 2022.
XRP Binance Scarcity Index. Source: CryptoQuant
After remaining negative throughout September and October 2026, the metric recorded a sharp multi-day surge into significantly positive territory, marking one of its strongest upward movements in four years.
As a result, the XRP Ledger: Exchange Reserves on Binance, 30-day Simple Moving Average (SMA), has crashed to a new multi-year low. At the time of writing, the XRP reserves on Binance (SMA 30) hovered at around 2,602,104,093 tokens, down from 3,293,564,370 tokens 12 months ago, as per data from CryptoQuant.
XRP reserve on Binance (SMA 30). Source: CryptoQuant
Historically, such a significant decline in tradeable tokens on Binance has preceded a renewed strong uptrend.
Although XRP supply on Binance has been in free fall, the token’s price has capitulated by more than 18% over the past month, trading at approximately $1.23 at the time of reporting. Consequently, the altcoin had a market capitalization of about $78.1 billion.
Token’s performance on Thursday. Source: CoinMarketCap
At the time of publication, XRP’s 24-hour average trading volume had plunged by more than 19% to $2.43 billion.
Despite the recent selloff, crypto analyst Ali Martinez expects a potential bull rally towards $2.1 in the near future, especially if the resistance level at $1.6 is broken.
The rising scarcity of XRP on Binance is well positioned to catalyze bullish sentiment.
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