XRP Reserves on Binance And Upbit Surge in January, Raising Sell-off Concerns

XRP’s worth has fallen beneath $2, erasing practically all the restoration for the reason that begin of the yr. At the identical time, XRP balances on a number of main exchanges have elevated. This pattern has heightened issues about additional draw back threat.

The pullback has coincided with broader market weak spot, as geopolitical tensions pushed traders towards risk-off positioning. However, many analysts stay optimistic about XRP in 2026.

XRP Exchange Reserves and Whale-to-Exchange Activity Surge in January

Data from CryptoQuant exhibits that XRP reserves on main exchanges resembling Binance and Upbit elevated considerably in January 2026.

The chart signifies that traders have constantly transferred XRP to exchanges for the reason that starting of the yr. As a end result, balances on Binance reached 2.72 billion XRP, whereas Upbit held practically 6.3 billion XRP. In whole, trade reserves now account for almost 10% of the circulating provide.

Notably, an inverse correlation between Upbit balances and the XRP worth has turn into more and more clear. Since Upbit reserves started rising in the primary week of January, XRP has dropped from $2.40 to $1.83. This pattern highlights the numerous affect of Korean traders on XRP’s worth motion.

Another notable on-chain metric is Whale Exchange Transactions (on Binance), which measures the variety of transfers between whales and exchanges. This indicator displays how actively giant holders transfer cash in and out of buying and selling platforms.

Rising trade reserves mixed with elevated whale transactions may intensify promoting stress. The knowledge means that extra whales could also be shifting XRP onto exchanges.

In addition, XRP ETFs have recorded solely two days of outflows since their November 2025 launch. The first got here on January 7, when $40.80 million was withdrawn from the funds. The second—and largest ever—occurred on January 20, with $53.32 million in outflows primarily from Grayscale’s GXRP. The January 20 selloff was largely pushed by President Trump’s tariff threats in opposition to European NATO members, which triggered a broad risk-off transfer throughout US markets.

A current BeInCrypto evaluation notes that when capital inflows stall and switch unfavorable, it typically alerts a pause or pullback in institutional demand.

Meanwhile, XRP has erased most of its early-year rebound and is now buying and selling close to the important $1.88 assist stage. Previous analyses warned {that a} breakdown beneath this stage could trigger a further 45% decline, doubtlessly pushing the value beneath $1.

Despite these dangers, a number of optimistic components might assist XRP take up promoting stress. A current report from Token Relations highlights a notable enchancment in XRP ETF buying and selling volumes in January. The report additionally factors to rising demand for DeFi merchandise on the XRP Ledger (XRPL).

“December 2025 noticed $483 million in XRP ETF inflows, whereas Bitcoin ETFs recorded $1.09 billion in outflows through the tax-loss harvesting season. This pattern suggests institutional rotation from Bitcoin to XRP forward of 2026. Trading liquidity remained strong, constantly processing between $20 million and $80 million in each day worth. Adoption exceeded expectations for altcoin ETF launches, with regular each day inflows indicating systematic allocation methods somewhat than speculative buying and selling,” Token Relations reported.

Despite these two outflow days, cumulative web inflows stay at $1.23 billion as of January 23, with whole web belongings of $1.36 billion. Analysts observe that the outflows seem like macro-driven somewhat than a elementary shift in sentiment towards XRP.

Recently, Ripple has continued expanding RLUSD’s use cases, a stablecoin on the XRP Ledger, by way of partnerships with multiple countries and institutions. These optimistic developments may present significant assist for XRP’s worth. If the token holds above $1.88 and ETF inflows proceed, a retest of $2.40 stays attainable. However, a break beneath assist would shift focus to $1.25.

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