XRP Binance Scarcity Index Hits 2-Year High, Setting Up Price Rebound

XRP's Binance Scarcity Index has hit its highest level in over two years, reaching 0.77. This indicates a significant reduction in sell-side supply on the largest exchange for XRP.

The scarcity index is based on data from CryptoQuant and shows that Binance's XRP reserves have dropped by around 20% since November 2024, from 3.27 billion to 2.6 billion coins.

This decrease in supply has led some analysts to suggest that the price of XRP may be due for a rebound. However, it's worth noting that demand remains a key factor in determining prices, and derivatives data suggests that shorts were squeezed near $1, setting up a test of the $1.20 resistance.

The daily chart shows that XRP fell from above $1.55 in February to the $1.00-$1.04 support zone in late June, but has since rebounded by 8.6% over the past week.