Similar to the other altcoins, XRP price has also been experiencing a major sell-off as the price slides to $1.16 with a drop of over 4.64% in the past 24 hours. With this, it is sending conflicting signals to the market. While the token has dropped to price levels not seen since November 2024, on-chain and institutional data suggest investors are quietly accumulating. XRP reserves have continued to decline, indicating that millions of tokens are leaving exchanges, while XRP-related ETF products have attracted steady capital inflows over recent weeks.
Yet XRP continues to struggle as Bitcoin’s sharp correction weighs heavily on the broader cryptocurrency market. The divergence raises an important question: Is XRP quietly entering an accumulation phase, or is broader market weakness overwhelming otherwise bullish fundamentals?
Recent on-chain data from CryptoQuant reveals a notable decline in Binance’s XRP reserves. The exchange’s holdings have fallen from above 3 billion XRP in late 2025 to roughly 2.71 billion XRP today, reflecting a substantial reduction in the amount of XRP readily available for trading.
Historically, declining exchange reserves are viewed as a constructive signal because investors typically move assets off exchanges when they intend to hold them rather than sell them. Reduced exchange balances also decrease the immediately available supply that can enter the market during periods of volatility.
Data tracking Spot XRP ETF net flows shows that investment products linked to XRP have continued attracting fresh capital throughout the past several weeks. Multiple trading sessions recorded inflows exceeding $10 million, with some days approaching the $25 million mark.
The persistence of ETF inflows during a broader market downturn suggests professional investors remain interested in gaining exposure to XRP despite the recent volatility. Unlike retail traders, institutional participants often take a longer-term approach and may view sharp corrections as opportunities to build positions at more attractive valuations.
The current setup presents a growing divergence between fundamentals and price action. On one side, exchange reserves are declining, and ETF products continue attracting capital. These are traditionally bullish indicators that suggest investors are accumulating rather than distributing. On the other side, XRP remains trapped in a broader market correction and continues to struggle near multi-month lows.
The weekly chart suggests the XRP price is due for a massive price action as the Bollinger bands have begun to squeeze. On the other hand, the weekly RSI has reached the lower threshold and is not showing the possibility of a bullish divergence. This suggests the price is due for a deeper correction, probably close to $1 or levels slightly below the range.
The bullish case for XRP remains dependent on broader market stabilization. If Bitcoin finds support and risk appetite returns, the combination of shrinking exchange reserves and positive ETF inflows could provide the foundation for a strong recovery.
However, if Bitcoin continues to weaken and market sentiment deteriorates further, XRP may remain under pressure despite favorable on-chain trends. In that scenario, the token could revisit lower support levels before accumulation signals begin translating into price appreciation.
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