XRP draws ETF cash as Binance liquidity falls to 2020 low

XRP spot exchange-traded funds collected $131.94 million in May and another $4.13 million in early June, according to data from SoSoValue. The inflows came amid a wider market sell-off that hit major cryptocurrencies in late May and early June.

Bitcoin spot ETFs recorded $2.43 billion in outflows in May and Ethereum spot ETFs lost $540.88 million over the same month, SoSoValue data show. Since the launch of XRP spot ETF products, funds recorded a single negative month of $31.16 million in March.

On-chain analytics from CryptoQuant show XRP liquidity on Binance fell to its lowest level since January 2020. Low order-book depth reduces the number of buy and sell orders available at any given price and can allow larger orders to move the price more quickly. Analyst ArabxChain warned that low liquidity ‘could make the market more sensitive to sudden price movements.’

Trading volumes registered rising selling pressure beginning May 30, which coincided with a price slide for XRP. That selling activity occurred while longer-term holders increased their positions. Glassnode’s hodler net position change rose to about 264.67 million XRP on June 2 from roughly 216.56 million on May 31, a roughly 22% increase over several days. The metric measures the monthly change in supply held by long-term addresses.

Earlier this year XRP experienced a roughly 53% decline from prior highs. Since early February the token has traded inside a rising parallel channel. The recent decline tested the channel floor, with XRP falling to $1.18 before recovering near $1.21. Data show the channel floor held during that pullback.

Traders cite near-term technical levels at $1.20 as a short-term reference point, with resistance identified around $1.28 and $1.35. The $1.35 level corresponds to a 0.618 Fibonacci retracement often used by technical traders and would represent about a 12.5% advance from current levels if reached. Immediate support sits at $1.18, with lower supports noted at $1.11 and $0.95.

Market conditions during the recent period combined continued ETF inflows with thinner exchange order books and increased selling volume from short-term traders. Long-term holder balances rose while short-term selling intensified. Observers are monitoring ETF flows, exchange liquidity and large-holder behavior alongside broader market moves for potential impacts on price dynamics.

Data referenced in this report come from SoSoValue, CryptoQuant and Glassnode. No trading advice is offered in this article.