XRP is testing a critical long-term demand zone below the $1.90 level as 
market conditions continue to deteriorate across the altcoin sector. After 
failing to sustain upside momentum, price action has turned increasingly 
fragile, with bulls struggling to defend key support levels. The structure now 
reflects growing weakness, reinforcing concerns that the broader market may be 
transitioning into a bearish phase that leaves altcoins exposed to deeper 
drawdowns. Related Reading: Bitcoin and Ethereum Coinbase Inflows Collapse 
While Binance Retains Relative Activity – Details Despite the softening price 
action, on-chain data is sending a more nuanced signal. A recent CryptoQuant 
report by CryptoOnchain highlights a sharp decline in XRP exchange reserves on 
Binance, even as price has continued to correct. Historically, falling 
exchange balances suggest that fewer tokens are being held on platforms where 
they can be readily sold, often pointing to reduced sell-side pressure rather 
than aggressive distribution. This divergence between price behavior and on- 
chain supply dynamics is particularly notable at current levels. While XRP’s 
chart suggests that buyers are losing control in the short term, the 
contraction in exchange reserves raises questions about how much selling 
pressure remains if price continues to slide. In past market cycles, similar 
conditions have preceded periods of stabilization or relief rallies, 
especially when broader sentiment becomes excessively pessimistic. As XRP 
hovers below $1.90, the coming sessions will be decisive. Whether shrinking 
exchange supply can offset weakening technicals will determine if XRP finds a 
base or extends its decline alongside the wider altcoin market. Exchange 
Reserves Hit Multi-Month Low as XRP Tests Key Demand Zone On-chain data is 
highlighting a notable shift in XRP’s supply dynamics at a critical moment for 
price action. According to the XRP Ledger Exchange Reserve chart, XRP balances 
held on Binance have dropped sharply to around 2.66 billion XRP. This 
represents the lowest exchange balance recorded since July 2024, signaling a 
meaningful contraction in the amount of XRP readily available for sale on the 
market. Historically, such declines in exchange reserves are interpreted as a 
constructive signal. They indicate that investors and larger holders are 
moving tokens off exchanges into self-custody, reducing immediate sell-side 
liquidity. When the supply available for trading shrinks, even modest demand 
can have a disproportionate impact on price, creating the conditions for a 
potential supply-driven move. This on-chain development is unfolding as XRP 
trades at a technically sensitive level. Price is currently testing the major 
demand zone between $1.80 and $1.90, an area that has previously acted as a 
foundation for broader bullish structure. Momentum indicators add context, 
with the RSI sitting in the lower range, suggesting bearish pressure is 
fading, though a confirmed reversal has yet to materialize. The alignment of 
declining exchange supply and strong technical support strengthens the case 
for a potential stabilization or rebound. If buyers successfully defend the 
$1.80 level, reduced liquid supply could fuel a sharp recovery. However, a 
decisive breakdown below this zone would undermine the bullish on-chain thesis 
and reopen downside risk. Related Reading: Gold &amp; Silver Break Out While 
Bitcoin Chops: Why Capital Is Flowing Into Precious Metals XRP Tests Long-Term 
Demand as Weekly Structure Weakens XRP is trading near the $1.87 level on the 
weekly chart, extending a prolonged corrective move that has eroded much of 
the bullish momentum built earlier in the cycle. After topping above the 
$3.40–$3.60 region, price has consistently printed lower highs and lower lows, 
confirming a clear shift toward a bearish medium- to long-term structure. The 
latest weekly candles show sustained selling pressure with limited downside 
wicks, suggesting weak dip-buying interest at current levels. From a trend 
perspective, XRP has lost its key weekly moving averages. Price is now firmly 
below the faster weekly average, which has rolled over and turned into 
resistance around the $2.40–$2.60 zone. The longer-term moving averages remain 
well below the current price, indicating that while the macro uptrend from 
prior years is technically intact, momentum has deteriorated sharply. Related 
Reading: The Gold-to-Bitcoin Rotation Narrative Gains Strength: A Data-Driven 
Review The $1.80–$1.90 area stands out as a critical demand zone. This region 
has acted as structural support in the past and now represents the last 
meaningful level bulls must defend to avoid a deeper breakdown. A sustained 
weekly close below $1.80 would significantly weaken the broader structure and 
expose XRP to a move toward the $1.50 area or lower. Selling activity 
increased during the breakdown from $2.50, while recent weeks have shown 
declining volume, pointing to exhaustion rather than accumulation. For XRP to 
regain strength, price would need to reclaim the $2.20–$2.40 region and 
establish acceptance above former support-turned-resistance. Featured image 
from ChatGPT, chart from TradingView.com

XRP Exchange Reserves On Binance Fall To Six-Month Low: Selling Pressure Is Easing

Recent market dynamics have seen Ethereum (ETH) at the forefront of a 
significant decline in the altcoin sector, pushing many top cryptocurrencies 
below crucial price levels. Market expert CyrilXBT has taken to social media 
platform X (formerly Twitter) to unravel the factors contributing to this 
downturn and explore the potential for a recovery rally in 2026. Altcoin 
Struggles CyrilXBT began his analysis by addressing the role of Bitcoin (BTC) 
dominance in the market. When Bitcoin&#8217;s dominance increases, capital tends to 
concentrate within the asset rather than exiting the broader cryptocurrency 
market. Related Reading: Expert Predicts Bitcoin Could Hit $70,000, Drawing 
Parallels To December 2021 Crash This indicates that Bitcoin becomes a refuge 
for investors seeking safety, while altcoins transform into sources of 
liquidity. As a result, risk compresses prior to any expansion, a pattern 
consistently observed in previous cycles before altcoins regain strength. 
Another contributing factor to the current turmoil is tax-loss harvesting. 
Cryptocurrencies are one of the few major asset classes that have seen 
declines compared to January 1st, with equities and gold demonstrating gains. 
To lock in losses before year-end, funds are actively selling off unprofitable 
altcoin positions, crypto exchange-traded funds (ETFs), and other high-risk 
assets. CyrilXBT noted that this pressure would likely dissipate as the 
calendar turns to the new year. Liquidity Lag And Exhausted Demand The expert 
further highlighted that liquidity tends to work on a lagging basis. Although 
the Federal Reserve (Fed) has started to inject liquidity back into the 
system, markets typically do not react immediately. Historically, improvements 
in liquidity occur first, followed by Bitcoin stabilizing, with altcoins 
lagging behind. Currently, the market remains in the lag phase, not yet 
experiencing the anticipated breakout. With low volatility, stagnant Bitcoin 
prices, and declining altcoins, CyrilXBT asserts that it evokes memories of 
previous cycles, such as the early 2019 and early 2023 recoveries. Related 
Reading: Ethereum Bearish Structure Meets Bullish Supply Signal – What Happens 
Next Overall, the drop in the altcoin market can be attributed to several 
interconnected factors: rising Bitcoin dominance, peak tax-loss selling, thin 
liquidity, exhausted demand, and the delayed effects of macro liquidity. 
Instead of a capitulation scenario, the expert suggests that this moment 
appears to represent compression—a phase that frequently precedes significant 
recoveries. Featured image from DALL-E, chart from TradingView.com

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As the Bitcoin (BTC) price settles below the critical $90,000 support level, 
discussions about the potential onset of a new bear market are growing among 
experts and market analysts. The market’s leading cryptocurrency, currently 
trading at approximately $87,370, has experienced a decline of over 30% from 
its all-time high of more than $126,000, drawing comparisons to past market 
behaviors, particularly those witnessed in December 2021. Fractal Patterns 
Resurface Notably, on December 24, 2021, Bitcoin was valued at around $51,700, 
marking a local peak before it plummeted to $34,000 by January 24, 2022. This 
decline represented a significant 34% drop within just one month. Related 
Reading: This Friday’s Bitcoin Options Expiry Could Shake Up The Market: What 
To Look Out For An expert analyzing the current market dynamics has applied a 
fractal model derived from that previous sell-off to Bitcoin&#8217;s present price. 
According to this analysis, there is a potential trajectory that could see the 
cryptocurrency move toward the $70,000 mark in the coming days. The expert 
argues that given the current price action and current market conditions, this 
scenario is plausible and suggests an additional decline of about 20% for the 
Bitcoin price if a similar pattern unfolds. However, without clear direction, 
the question remains whether this situation will unfold into a recovery above 
key price levels or into an extended bear market heading into the first 
quarter of 2026. As such, perspectives among analysts vary widely. Expert 
Predicts ‘Bitcoin Supercycle’ Ahead CryptoKaleo, another figure on social 
media platform X (formerly Twitter), posits that the current market mirrors 
conditions seen in the fall of 2020. Both scenarios involved Bitcoin losing a 
critical support level that had been established in the wake of significant 
market corrections, leading to a &#8220;mini-bart&#8221; scenario where the price retraced 
nearly all of its previous gains, eventually finding a new base. During the 
recovery phase after the COVID-19 crash in 2020, traditional stocks, 
particularly in the tech sector, significantly outperformed Bitcoin, leading 
many to claim that the leading cryptocurrency was fading into irrelevance. 
Related Reading: These Five Key Drivers Could Boost XRP To $5 By 2026, Claims 
Top Analyst Today, as equities frequently reach new all-time highs, a similar 
narrative is emerging, with some asserting that Bitcoin has become stagnant 
and altcoins are lacking momentum. Despite this, CryptoKaleo remains 
optimistic, suggesting that the present situation does not conform to the 
typical four-year market cycle for the cryptocurrency. Instead of a prolonged 
bearish phase, he predicts that when Bitcoin reaches new all-time highs in 
2026, it will usher in an exciting &#8220;supercycle,&#8221; characterized by prolonged 
upward trends, robust altcoin seasons, and a resurgence of retail interest in 
mainstream cryptocurrencies. Featured image from DALL-E, chart from 
TradingView.com

Cryptocurrency price in ZAR