Quick overview

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XRP reserves held on Binance have significantly decreased in recent weeks, signaling increased pressure on the liquid exchange supply. CryptoQuant’s XRP exchange reserves fell from about 3 billion tokens in mid-October to just 2.71 billion, coinciding with a persistent slowdown in price momentum

Exchange-held reserves have declined alongside the steady drop in XRP’s price since early November, suggesting a possible inverse relationship between available liquidity and investor confidence.

A reduced supply can ease sell-side pressure and boost price responsiveness in case of renewed demand, which is why declining exchange reserves are generally viewed as a long-term bullish sign.

However, this move also highlights the fragility of short-term sentiment, as market players remain hesitant to invest until XRP breaks above key resistance levels, most notably the $2.40–$2.50 range, which has halted several upward attempts this month.

Roger Bayston, Head of Digital Assets at Franklin Templeton, aims to offer clients packaged investments that include a comprehensive cryptocurrency portfolio.

Diversification might be what attracts significant attention this year, Bayston told The Block.

He also mentioned that there will be many ETF options and diversified portfolios, describing single-asset ETFs as “super interesting” with “a lot of community enthusiasm.” Grayscale and Franklin Templeton’s new spot XRP ETFs each drew over $60 million on their first day of trading.

Financial institutions have shown strong interest in launching altcoin-based funds that track well-known tokens like XRP, Solana, and Dogecoin, following the success of Bitcoin and Ethereum ETFs. Bayston expressed enthusiasm about the next phase Franklin Templeton can offer to its diverse client base, which includes wealth managers and investment advisors.

Historically, accumulation from high-net-worth clients and custodial platforms seeking low entry points has increased after supply reductions on major exchanges like Binance.

Nonetheless, momentum in the broader altcoin markets remains weak, aligning with increased macroeconomic uncertainty ahead of the Federal Reserve meeting in December.

XRP is currently trading near its two-week moving average, indicating sideways consolidation. Exchange reserves are at their lowest level since August, making it more critical whether XRP can hold support above $2.15. Below this level, a breakdown could happen.