Bitcoin (BTC) continues to be range-bound, giving little clarity about its direction. This lack of certainty appears to be weighing on the broader crypto market, as altcoins underperform, with most of them down more than 30% over the past month, including XRP.
Is XRP facing short-term risk?
The week ending February 22 saw a significant rise in inflows to the Binance crypto exchange. Binance is typically the exchange of choice for large traders and holders due to its unrivaled deep liquidity.
For the uninitiated, liquidity essentially means how easy it is to sell an asset without impacting its price too much. If an investor is not careful, low liquidity can result in catastrophic losses.
On February 21, over 31 million XRP coins were transferred to Binance crypto exchange. The bulk of the inflows stemmed from the largest holder cohorts.
The following cohort breakdown shown in the charts shows that retail activity is almost insignificant. Wallets holding less than 1,000 XRP and those holding 1,000 to 10,000 XRP collectively sent only about 80,000 XRP coins to Binance.
The chart shows that the recent huge XRP coin inflows to the Binance crypto exchange are primarily driven by large holders. Wallets holding 100,000 to 1,000,000 XRP coins sent a total of 14.2 million XRP coins to Binance.
Finally, wallet addresses holding more than 1,000,000 XRP coins sent close to 14.5 million coins to Binance in total. Taken together, wallets holding at least 100,000 XRP coins sent approximately 28.7 million coins, representing close to 90% of the total inflow.
Will XRP see a bullish reversal?
XRP’s recent downward stride has the bulls worried, as the digital asset eyes its next major support level at around $0.50, a level last seen in November 2024. Since then, XRP has been on a parabolic journey, hitting as high as $3.65 in July 2025.
However, the cryptocurrency has been on a continual slump since August 2025, recently falling below its realized price. That said, the liquidity compression surrounding XRP is set to initiate a major move in the digital asset. Coupled with the lowest exchange reserves since 2024, it could ignite bullish momentum.
