Over 2.69 billion XRP deposited into CEX: Selling pressure intensifies, where will XRP price go?

At the beginning of the new year, XRP’s trend did not continue the festive mood of the holidays. Since reaching a stage high of $2.41 on January 5, its price has been on a steady decline.

As of January 12, XRP is trading at $2.0992. This price not only represents a significant retreat from the year’s high but also reflects a rapid shift in market sentiment from optimism to caution within just one week.

01 Market Overview

At the start of 2026, the crypto market failed to sustain the year-end rally, with XRP’s price movement being particularly typical. After a consecutive five-day rise at the beginning of the new year, XRP experienced a remarkable single-day surge on January 5, jumping from $2.08 to $2.36.

The next day, XRP briefly touched a high of $2.41, the highest since mid-November 2025. However, the market’s optimism was short-lived, and the price turned downward afterward.

According to the latest data from Yahoo Finance on January 12, XRP’s price has fallen back to $2.0992, with a trading volume of $2.36 billion on that day.

Recent key data for XRP prices are shown in the table below:

02 Warning Signals

Market turning points are often predictable. On-chain data from CryptoQuant shows a clear bearish signal: approximately 2,692,600,000 XRP are held on Binance.

An increase in exchange reserves is often seen as an early warning sign. This suggests that holders may be planning to sell their assets, potentially paving the way for further price declines.

“Exchange reserves are a key indicator of liquidity and accessibility, but they often also foreshadow adverse price movements for the related assets,” a market observer noted.

Although the Binance exchange reserve of XRP has only increased slightly by 0.30% in the past 24 hours, the absolute number is already substantial. This indicates that traders might be selling assets to take profits after the long-term volatility in Q4 2024 or to hedge against potential market risks in the new year.

03 Market Pressure

Selling pressure is not only evident in the spot market. XRP’s futures market also shows a synchronized bearish trend. As of January 8, only 1.96 billion XRP are committed in active futures contracts.

More notably, within the past 24 hours, the open interest of XRP contracts supported by exchanges has decreased by 3.61%, directly reflecting waning investor confidence as momentum diminishes.

The negative market trend is clearly reflected in the price. Over the past 24 hours, XRP has fallen by 3.28%, with the current trading price at $2.12.

This widespread cautious sentiment is not unique to XRP. The entire crypto market’s rally at the start of 2026 appears to have cooled, with many assets continuing to decline. Over the past 24 hours, the total liquidation in the crypto market exceeded $479 million, with longs accounting for $434 million.

04 Liquidation Storm

Recent sharp price fluctuations in XRP have triggered a liquidation storm with both long and short positions being wiped out. Data shows that this storm has had the most severe impact on Binance.

Within 48 hours on January 5, a waterfall of XRP liquidations caused traders shorting the asset to lose over $4.4 million. The price surged rapidly, causing these investors to incur losses. Of this $4.4 million, about $3.09 million was liquidated on Binance.

This short squeeze prompted traders to chase the rally and open leveraged long positions near $2.40. However, the market subsequently experienced a price correction, enough to trigger long liquidations on January 6.

In addition to a subsequent peak of $1.5 million in liquidations, approximately $4.4 million of long positions were also wiped out as late buyers got caught at the top.

“These liquidation waves often intensify aggressive price reversals, especially when both longs and shorts are trapped,” commented an analyst.

05 Future Outlook

Despite short-term selling pressure, the market is not without positive signals. On-chain data from CryptoQuant indicates that whale XRP funds flowing to Binance have begun to decrease, possibly signaling easing selling pressure.

A recent analysis points out that, based on XRP flows to Binance, whales account for nearly 60.3% of the total fund flow, while retail investors make up 39.7%. Although whales still hold the largest share, the overall trend since mid-December shows this proportion has declined after peaking above 70% in November and early December.

A surge in whale fund flows to exchanges is usually seen as a sign of impending selling, while a decrease suggests reduced selling pressure from major players.

The early-year rally pushed XRP above the 50-day moving average (MA) of $2.01, which had been suppressing its price since early October. The market now focuses on whether XRP can turn this former resistance into support to continue its upward trend.

06 In-Depth Analysis

From a technical perspective, XRP is currently at a critical juncture. According to TradingView analysis, today’s technical signals show a buy, but a weekly rating indicates a sell.

A deeper one-month rating again points to a buy. This divergence suggests differing views on the medium to short-term trend, requiring investors to analyze more carefully.

Volatility is a normal feature of the crypto market, and XRP is no exception. Today, XRP’s estimated volatility is 3.49%. This means investors must be well-prepared and review all available information before making decisions.

For investors seeking a more stable trading environment, platforms like Gate are worth considering. Trusted by over 48 million traders, Gate offers a wide range of crypto trading options.

The platform currently supports over 4,200 cryptocurrencies, with a 24-hour trading volume of $11.71 billion, providing users with deep liquidity and a rich selection of trading pairs.

Future Outlook

After a brief rebound to $2.10 on January 12, the market remains focused on the 2.69 billion XRP accumulated on Binance.

Whale fund flows have decreased, but retail investor movements remain uncertain. Data from Gate shows XRP’s price fluctuated slightly to $2.096, reflecting cautious market balance.

On the price chart, the 50-day moving average at $2.01 remains a key support level.