XRP Exchange Flows Shift Amid Weakening Institutional Demand and Rising Liquidation Pressure

XRP's exchange flow dynamics have undergone a significant change in the past week. According to CryptoQuant data, Bybit's month-long deposit imbalance has largely faded, while Binance and Coinbase now display stronger withdrawal activity.

This shift marks a departure from the earlier trend of persistent exchange deposit pressure. The latest data shows that Bybit's transaction delta returned close to neutral around May 16, indicating a slowdown in exchange inflows. Meanwhile, Binance and Coinbase have moved into negative transaction territory, with withdrawal activity exceeding deposit activity on both exchanges.

Additionally, institutional demand has weakened on Binance, as indicated by CryptoQuant's institutional accumulation metric. The decline coincided with XRP's drop towards the $1.38 region, but the indicator remains close to neutral territory, suggesting that the market has not entered a severe distribution phase.