470 Million XRP at Risk of Sell-Off on Binance, Here Are Price Scenarios

The volatility on the broader crypto market remains a determining factor shaping both retail and whale activities. Over the past week, on-chain data shows that as many as 470 million $XRP have been deposited on Binance.

$XRP Sell-off in view?

$XRP netflow remains a major trend that determines investor outlook. Precisely, the netflow from the $XRP Ledger to Binance, per CryptoQuant data, comes in at $472 million.

As amplified by $XRP proponent STEPH IS CRYPTO, this shows a bearish outlook as such deposits might be accompanied by some sell-offs.

The outlook was showcased in the coin’s price action in the short term. Over the past week, the $XRP price has fallen by 1.08% to $1.36. This comes after a mild recovery for $XRP as it has erased its more than 4% drawdown in the past 24 hours.

Sell-off concerns remain on the horizon as the negative trading volume suggests poor liquidity conditions. As of writing time, daily volume has dropped 25%, signaling limited engagement by retail investors.

Activities on the $XRP Ledger have seen varied shifts in the past week. However, with active developer engagement, the projections are high that every negative trend, like the massive drawdown in $XRP ETF flows in the past few days, will be upturned.

If the Binance deposits translate to sell-offs, the $XRP price may retest the $1.30 support. However, with broader market strength, a bullish consolidation toward $1.50 cannot be ruled out.

Beyond $XRP netflow, use case focus grows

With a new month, Ripple Labs has released $XRP from escrow in its usual manner, a move that can support broader use cases in different ecosystems.

The optimism for $XRP adoption by investors remains high as its integration on exchanges and platforms remains high.

Proponents believe $XRP is on track to displace Ethereum as the second-largest digital currency by market capitalization. While maintaining its role as a bridge asset, developers are pushing for new amendments that will help enhance the role of $XRP on DeFi protocols on the XRPL.