Why XRP’s Exchange Reserve Surge May Signal Accumulation, Not Panic

XRP (XRP) exchange reserves surged across major platforms in September, marking a notable shift in supply dynamics. Such increases are usually interpreted as bearish, suggesting more tokens could be primed for selling. 

Nonetheless, one analyst argued the trend may signal something different this time. Instead of immediate sell pressure, the pattern points toward strategic accumulation.

XRP Reserves Surge Across Exchanges—Sell Signal or Strategic Accumulation? 

CryptoOnchain reported that on September 1, on-chain data showed synchronized XRP reserve spikes across multiple top exchanges, including Binance, Bithumb, Bybit, and OKX, and a more modest rise on Gate.io. According to the data, Binance recorded the largest change, with its XRP reserves climbing from 2.928 billion to 3.538 billion (+610 million XRP). 

Bithumb’s holdings rose from 1.647 billion to 2.519 billion XRP. Bybit nearly doubled its reserves, increasing from 188 million to 380 million XRP. Meanwhile, OKX saw its balance surge from 112,000 to 233 million XRP. 

XRP Exchange Reserves. Source: CryptoOnchain/CryptoQuant

These figures point to a coordinated influx of XRP across multiple exchanges. CryptoOnchain emphasized that the timing of this accumulation is particularly important.

It coincided with XRP testing a key support level around $2.73. Historically, this level has acted as a strong buffer, repeatedly preventing deeper price declines.

This raises the question of whether the recent spike in reserves signals accumulation rather than the usual bearish sell pressure typically linked to exchange inflows.

“The simultaneity of these four large accumulations, and that too at support, could be a sign of institutional coordination or an upcoming event,” CryptoOnchain said.

At present, XRP is holding near $2.95, up 3.96% over the past week. The analyst added that technical indicators such as the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) reflect a notable reduction in selling pressure.

“This could mean that the heavy buying by exchanges was aimed at accumulation rather than immediate injection into the market and its price impact may be seen with a delay,” he noted.

XRP Price Performance. Source: CryptoOnchain/CryptoQuant

CryptoOnchain also forecasted that if the current support holds and buying volumes continue, XRP has the potential to move toward the next resistance levels at $3.34 and $3.58. Nevertheless, if the support is flipped, the increased reserves could instead fuel massive supply, intensifying selling pressure.

Similarly, another analyst highlighted that as long as $2.7 holds, the outlook for XRP remains bullish, with room for further long-term upside. 

A breakout above $3.3 could accelerate momentum and spark a full-blown rally. However, the analyst cautioned that a drop below this support level would significantly weaken the outlook.

Market experts are also hopeful about XRP’s prospects, citing potential ETF approval as a positive catalyst.

“XRP’s recent market strength also reflects growing confidence in a near-term decision from the SEC on several issuers that have pending ETF applications for XRP-focused product offerings. The clustering of the decision deadline into late October raises the stakes, as a synchronized approval window could accelerate fresh liquidity, reshape XRP’s market structure, invalidating existing bearish patterns, and drive XRP towards $3.4 and possibly further to $4. The flip side is equally sharp: rejection or delayed decision could drag the XRP back towards $2.7,” Shawn Young, Chief Analyst at cryptocurrency exchange MEXC, told BeInCrypto.

Yet, not all perspectives are bullish. Greg Miller, a prominent analyst, warned that a near-term recovery to $3 or higher is unlikely.

“XRP exchange reserves on Binance just spiked to 1-year highs, signaling heavy selling pressure. The breakdown from $2.74 confirms bearish momentum, with recovery to $3+ looking unlikely in the near term,” he wrote.

BeInCrypto has also flagged potential red flags for XRP in September, citing dropping Total Value Locked (TVL) and interest as factors that could undermine the current rally.