XRP holdings on exchanges are falling quickly. With prices continuing to adjust, more tokens are moving off exchanges, prompting interpretations that demand for long-term holding is growing.

The Crypto Basic, a blockchain outlet, reported on June 29 local time that Binance’s XRP exchange holdings stood at 2.64 billion tokens, the lowest level in four months.

CryptoQuant data showed that amount is about 4.2 percent of XRP’s circulating supply. Binance held about 2.8 billion XRP around March, then dipped slightly before rising again to 2.78 billion in May. More recently, holdings fell again to the lowest level since February, when Binance’s XRP holdings were 2.55 billion tokens.

A decline in exchange holdings is generally interpreted as a sign that the amount available for short-term selling is shrinking. It means investors are withdrawing XRP from exchanges and moving it to self-custody wallets. Some in the market say bargain buying and demand for long-term holding are appearing together during the latest decline.

Exchange outflows were not limited to Binance. CoinGlass data showed a net outflow of $42.67 million worth of XRP from global trading platforms over the past 10 days. Over the same period, inflows totaled $822 million and outflows $864.6 million. Over the past 24 hours, holders also withdrew $69.84 million, which was $5.78 million more than inflows of $64 million.

This trend continues even as XRP prices show weakness. XRP fell 7 percent over the past 24 hours, joining a broader market correction. Some investors appear to be using the decline as an opportunity to buy more. XRP is currently at $1.05, holding above the $1 support level.

On-chain indicators also improved. Over the past two weeks, the number of active XRP addresses rose 36 percent. Increased receiving-wallet activity on the XRPL ledger aligns with interpretations that tokens leaving exchanges are moving to long-term holding wallets.

Even so, a fall in exchange holdings does not guarantee an immediate price rebound. Tokens moving off exchanges can help reduce selling pressure, but a rebound could gain momentum only if broader risk-asset appetite, bitcoin price trends and demand for XRP itself also improve.

Technical indicators showed TD Sequential recently flashed a buy signal on XRP’s daily chart. The pattern was presented as a sign that selling pressure is nearing exhaustion and a rebound could follow in the coming days.

Ultimately, market attention is focused on whether falling exchange holdings and rising on-chain activity will translate into an actual price recovery. If accumulation continues while XRP holds the $1 support level, expectations for a short-term rebound could grow, but the possibility of further adjustment is hard to rule out if it breaks below support.