XRP’s recent price behavior has left traders searching for concrete explanations beyond general market volatility. While macro sentiment, regulatory clarity, and network fundamentals all play a role, short-term price movements are often driven by liquidity dynamics that unfold quietly on exchanges.
In XRP’s case, on-chain signals are beginning to reveal why upside momentum has struggled to hold.
According to data highlighted by STEPH IS CRYPTO, a notable shift has occurred on Binance, the largest exchange by trading volume. The analyst pointed to a sharp rise in XRP deposits beginning around December 15, a development that has important implications for near-term price action.
After this initial reference, Steph’s analysis centers on what these inflows typically signal within the crypto market structure.
🚨 Rising Binance inflows are adding sell pressure to $XRP.
Since Dec 15, daily deposits jumped sharply, peaking at 116M XRP.
Rapid exchange inflows are often a sign of intent to sell. pic.twitter.com/53KRXskXog
— STEPH IS CRYPTO (@Steph_iscrypto) December 29, 2025
Rising Exchange Inflows and Sell-Side Risk
On-chain metrics consistently show that rapid inflows of tokens to centralized exchanges tend to precede increased selling activity. When XRP moves from self-custody wallets into Binance, it becomes instantly available for spot sales, margin trading, or derivatives positioning.
This transition alone does not guarantee selling, but it meaningfully raises the probability of added sell-side pressure.
Steph’s data shows daily XRP deposits climbing aggressively, eventually peaking at roughly 116 million XRP in a single day. This is not a routine fluctuation. Such a volume increase represents a behavioral shift among holders, signaling preparedness to transact rather than long-term storage.
Why Binance Matters More Than Other Exchanges
The concentration of these inflows on Binance is especially significant. Binance remains the deepest liquidity venue for XRP, meaning activity there often sets the tone for global price discovery. Large sell orders placed on Binance are quickly reflected across other exchanges through arbitrage mechanisms, amplifying their market impact.
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— TimesTabloid (@TimesTabloid1) June 15, 2025
Historically, periods of elevated XRP inflows to Binance have aligned with price consolidation or corrective phases. This pattern reinforces the idea that exchange-side liquidity expansion, when not matched by rising demand, tends to cap upside moves.
The Timing Factor Behind the Surge
The mid-December timing adds further context. This period often coincides with year-end portfolio adjustments, risk-off positioning, and heightened derivatives exposure across crypto markets. Against this backdrop, the sudden influx of XRP suggests deliberate positioning rather than random wallet movements.
Importantly, this activity does not undermine XRP’s broader utility or long-term adoption narrative. It reflects short-term holder behavior responding to market conditions, not a deterioration in network fundamentals.
What It Means for XRP Going Forward
As long as elevated Binance inflows persist, XRP may face continued resistance during attempted rallies. A sustained reduction in deposits, or a shift toward net outflows, would be a stronger signal that sell pressure is easing.
For now, the data underscores a clear reality: liquidity is moving toward exchanges, and in the short term, that flow is working against XRP’s price momentum.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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