XRP price shows a bullish long-term outlook as exchange reserves continue to fall and ETF inflows persist, while bearish short-term bias and price action hint at a potential reversal.
The XRP price saw a notable 27% jump in August 2026 and is likely to continue its upward move in the coming days. The key catalysts supporting this optimism appear to be the decline in Binance's XRP reserves, which suggests potential accumulation, and persistent inflows into XRP ETFs.
According to the on-chain tool CryptoQuant, the XRP reserve on Binance continues to decline even after the recent correction. Data shows that over the past week, when the price declined by nearly 6.50%, XRP reserves on Binance have declined from 2.628 billion tokens to 2.606 billion tokens, meaning over 22 million XRP tokens have left Binance during this period.
This falling exchange reserve typically shows that investors and long-term holders are withdrawing assets from the exchange, which is a bullish signal for investors.
In addition to the falling Binance XRP reserve, CryptoQuant recently shared a post on X revealing that 500 million XRP have left Binance since late 2024. The analyst following this significant withdrawal stated, “This sends a relatively positive signal for XRP, although this dynamic is more relevant from a long-term perspective than in terms of having a direct impact on the price in the short term.”
Not only have crypto investors and long-term holders shown interest in XRP, but traditional investors have also shown similar interest.
According to the on-chain platform SoSoValue, U.S. spot XRP ETFs have continued to record inflows since August 6, 2026, with the most recent inflow of $14.38 million recorded on September 1, 2026. This record inflow came as spot Bitcoin ETFs recorded $236 million in outflows.
Despite these bullish developments, today, the XRP price declined 2.10% over the past 24 hours and traded at the $1.35 level. During the same period, the asset’s trading volume climbed 16% to $2.58 billion, indicating heightened participation from traders and investors.
This notable rise in trading volume while the price declines suggests that market participants are potentially interested in the current trend.
With falling prices, short-term market sentiment turns bearish, as recorded on the derivatives tool CoinGlass. As per the latest update from the exchange liquidation map, $1.315 on the lower side and $1.365 on the upper side are the two key liquidation levels.
At these levels, over-leveraged traders have built $42.83 million worth of long positions and $51.07 million worth of short positions. These bets now suggest that traders have a bearish bias and are potentially looking for the price to decline.
Now the question is whether the XRP price continues to decline or if a potential reversal is on the horizon.
According to the TradingView daily chart, the XRP price is in an uptrend despite a recent correction, as it continues to trade above the 200-day Exponential Moving Average (EMA). Despite a 6.50% price decline over the past week, the asset remains above the key support level of $1.31.
Based on the current price action, if the XRP price remains above the $1.31 level, it could potentially see a price reversal. In this scenario, the asset could resume its upward move. However, a breakdown below the $1.31 level could end the bullish thesis, and in this case, the asset could see a sharp downside move.
When combining falling XRP reserves on Binance, persistent inflows into spot ETFs, and traders' bearish bets, it appears that XRP has strong long-term potential, whereas its short-term bias seems bearish. However, price action hints that the asset has undergone a notable correction, potentially setting the stage for a reversal in the coming days.
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