XRP Flows Into Binance: What it Signals

What to Know:

• Over 31 million XRP tokens were recently transferred to the Binance exchange, creating uncertainty about potential price reactions.
• This event occurs within a broader context of bearish consolidation and sideways price movement for XRP.
• The large inflow could signal potential selling pressure, impacting XRP’s price and institutional investment strategies.

XRP has experienced significant volatility, with a 51% price drop since October 2025. Recent weeks have seen some stabilization, but a clear rebound remains elusive as the cryptocurrency trades sideways around $1.39. A notable transfer of over 31 million XRP to Binance has introduced fresh uncertainty, prompting investors to reassess potential future price movements.

31 Million XRP Hits Binance in One Day

On February 21, Binance recorded an inflow of 31 million XRP, marking the largest single-day inflow to the exchange this month, according to data from CryptoQuant. This spike contrasts with typical daily deposits earlier in the month, which ranged between 1.2 million and 1.8 million XRP, with occasional spikes above 15 million XRP. The February 21 movement is the first instance this month of inflows exceeding 20 million XRP, a threshold that has caught the attention of market participants.

Large holders played a significant role in this spike. Wallets holding 1,000 XRP moved 398,297 XRP to Binance, while those with balances between 1,000 and 10,000 XRP transferred 1.131 million XRP. Addresses holding between 10,000 and 100,000 XRP sent 4.985 million XRP. The most substantial contributions came from wallets with 100,000 to 1 million XRP, transferring 11.935 million XRP, and holders with over 1 million XRP, who moved 11.844 million XRP. Collectively, these groups transferred 31.75 million XRP to Binance on February 21.

Upbit Also Records Inflow Spikes

The inflow spike on February 21 was not exclusive to Binance. Upbit, the largest crypto exchange in South Korea, also recorded a substantial inflow on the same day, albeit smaller than Binance’s figure. Upbit saw 14.8 million XRP flow into the platform. While whales dominated Binance’s inflows, mid-sized holders primarily drove Upbit’s activity. Wallets holding between 10,000 and 100,000 XRP transferred 8.615 million XRP, accounting for 58% of the total 14.8 million XRP inflow. Addresses with 1,000 to 10,000 XRP moved 1.48 million XRP, while whales holding 1 million XRP and above transferred 4.7 million XRP. These mixed signals from two major exchanges have introduced uncertainty among investors regarding potential future movements.

Potential Implications for Price

A one-day exchange inflow of approximately 31 million XRP carries several potential implications. Typically, large whale deposits to exchanges are interpreted as a signal that some holders intend to sell, which could limit any potential rally or cause short-term price dips. Given that XRP has been declining for five months and is currently trading around $1.39, additional selling pressure could keep the price range-bound, hindering any recovery attempts. However, not all exchange deposits lead to selling. Whales sometimes move funds to exchanges to place buy orders. If strong buy walls emerge following the transfer, the inflow could indicate accumulation rather than liquidation.

The movement of tokens could also be related to trading strategies, derivatives collateral, or arbitrage opportunities, in which case the inflow would not necessarily result in net selling. Large transfers sometimes occur near market bottoms, and if the market absorbs the supply while the price remains stable, it could indicate robust underlying demand. This scenario would be constructive for XRP, suggesting that the market is capable of absorbing large sell orders without significant price depreciation.

Signals to Watch Next

The coming days will be crucial in revealing signals that could help determine the direction of XRP’s price. Continued spikes in exchange netflows could suggest that more holders are preparing to sell, while negative netflows, where withdrawals exceed deposits, may indicate that investors are accumulating after repositioning. Monitoring order book activity will also be essential. The emergence of large sell walls within 1% to 3% above the current price, coupled with weakening buying interest, could indicate that sellers are gaining control. Conversely, the appearance of significant buy walls near support levels and increased spot trading volume while XRP holds between $1.35 and $1.40 could demonstrate that buyers can absorb the additional supply.

Conclusion

The recent transfer of over 31 million XRP to Binance has injected uncertainty into the market, underscoring the complexities of interpreting on-chain data. While the inflow could signal potential selling pressure, alternative explanations such as strategic trading, collateralization, or accumulation cannot be ruled out. Investors should closely monitor netflows and order book dynamics to gauge the prevailing sentiment and potential price direction in the short term. The interplay between buying and selling pressure will ultimately determine XRP’s trajectory, requiring a nuanced understanding of market structure and participant behavior.

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Source: Original article