Ripple (XRP) Price Analysis: XRP traders deposit $85M on Binance as market sell-off cools

XRP price reclaimed the $2.40 mark on January 11, after a turbulent start to the week. On-chain data shows XRP exchange reserves remain elevated as market sentiment hangs in the balance. How will this impact Ripple price recovery in the days ahead?

XRP price bounces 7% as traders react to Ripple CEO’s Trump dinner update

XRP price was subject to volatile headwinds this week, as crypto markets reacted to external downward pressures. The sell-off tapered off towards the end of the week, with Bitcoin’s 3% rebound to reclaim $95,000 sparked mute gains across altcoin markets.

However, recent trends shows that XRP price recovery has moved ahead of the market average, buoyed by Ripple executives attendance at a recent dinner with US President-elect Donald Trump.

On January 8, Ripple CEO Brad Garlinghouse confirmed his attendance at a high-profile dinner with former President Donald Trump. Speculation surrounding the dinner sparked optimism that the meeting could signal political support for the broader cryptocurrency market, particularly amid Ripple’s ongoing battle with the U.S. Securities and Exchange Commission (SEC).

The dinner, which reportedly featured influential figures from the finance and tech industries, fueled rumors of potential regulatory shifts that could benefit Ripple and XRP.

Since the Ripple CEO’s post, XRP price has entered a sharp 7% rebound within last 48-hours to reach $2.40 at press time on January 11, outperforming the likes of BTC and ETH with gains subdued at 5%

This positive price action highlights the sensitivity of XRP to regulatory and macro-political news. Traders are now monitoring whether this event will catalyze further buying momentum as Trump’s inauguration slated for January 20, approaches.

XRP Exchange Reserves Surge $85 million as market sentiment remains uncertain

XRP price has surged 7%, outpacing the broader market recovery, driven in part by Ripple CEO Brad Garlinghouse’s appearance at a recent dinner hosted by former President Donald Trump.

However, despite the optimistic price movement, on-chain transaction flows reveal a more cautious sentiment among XRP traders, who remain wary of potential market volatility.

Supporting this outlook, CryptoQuant’s Exchange Reserves chart highlights the real-time value of XRP coins deposited in Binance-hosted wallets, offering a window into traders’ short-term sentiment.

The data shows that between January 5 and January 11, traders deposited 35 million XRP coins into Binance wallets. Valued at current prices, this represents an $85 million increase in short-term market supply over the past week.

This surge in exchange reserves presents a cautious outlook for XRP for two critical reasons. First, the significant increase in market supply suggests that traders may be preparing to sell, potentially capping any sustained upward momentum. Second, it underscores the market’s apprehension, as traders prioritize liquidity amid lingering regulatory uncertainty and broader crypto market turbulence.

Whether XRP can maintain its rally or succumb to selling pressure will depend on broader market dynamics and potential regulatory developments in the coming weeks.

XRP price forecast: Failure to breach $2.50 could trigger another pullback

After 7% gains in the last two days, technical indicators on the XRPUSD daily chart present a cautiously bullish XRP price prediction, highlighting major hurdles ahead.

The Volume Delta has flipped positive, indicating net inflows of 18.92 million XRP, reflecting a resurgence of demand in the market. This uptick signals that buyers are beginning to reclaim momentum, hinting at a possible continuation of the upward trend if buying pressure persists.

However, the Parabolic SAR indicator, currently at $2.57 and trending higher, suggests that bearish momentum may still weigh on XRP. A failure to breach the key resistance at $2.50 could trigger a pullback, especially as traders maintain a cautious stance. On-chain data shows a growing number of XRP coins in exchange reserves, underscoring the potential for short-term sell-offs if volatility spikes.

In conclusion, XRP’s ability to sustain the rally hinges on clearing $2.50. Otherwise, it risks sliding toward the $2.25 support zone.

Frequently Asked Questions (FAQs)

1. Why did XRP price rise 7% recently?

XRP price climbed 7% after Ripple's CEO attended a dinner with Donald Trump, sparking optimism about regulatory shifts.

2. 2. What does the increase in XRP reserves on Binance mean?

A surge in XRP exchange reserves, worth $85M, indicates traders may be preparing for potential sell-offs.

3. Will XRP price break the $2.50 resistance level?

XRP must clear $2.50 to sustain its rally. Otherwise, it risks falling to $2.25 amid cautious market sentiment.