XRP Scarcity Index Hits Two-Year High on Binance

The XRP scarcity index on Binance has reached its highest level since mid-2024, according to data from CryptoQuant. This indicates that XRP has become scarcer on the platform than in previous months.

The report notes that this behavior is typically seen when investors transfer their funds to private cold storage wallets or when buying pace outpaces the flow of fresh incoming deposits.

Technical analysts believe that this reduction in exchange inventory coincides with a long-term chart structure on the daily chart, specifically a falling wedge formation. This pattern historically precedes trend reversals once the upper boundary is broken.

The price of XRP has remained stable above $1.13 dollars in recent sessions, and market data places it around $1.14 dollars at the close of recent sessions.