XRP Sell Pressure Eases as Exchange Outflows Rise, but August Risks Remain

On-chain data suggests selling pressure on XRP is fading as August begins, but weak seasonal performance and limited institutional demand could still weigh on the cryptocurrency's price outlook.

Crypto analyst Darkfost reported that XRP inflows to Binance have fallen to their lowest level on record, with average monthly deposits dropping to around 3.6 million XRP. Although the amount remains substantial, it represents the smallest monthly inflow ever recorded, indicating that fewer holders are moving tokens to exchanges for potential selling.

According to the analyst, the trend points to seller exhaustion and could help XRP maintain stronger support above the $1 level. However, he noted that a sustained bullish trend will require renewed buying demand rather than simply reduced selling activity.

Additional on-chain data reinforces the shift in market behavior. Another analyst found that XRP withdrawals accounted for 55.6% of all XRP transactions on Binance during the seven days ending July 31, marking the highest level since February 2021. Across all major centralized exchanges, withdrawals represented roughly 54% of XRP activity, suggesting the trend extends beyond a single trading platform.

Meanwhile, deposit transactions continued to decline. Binance's deposit share dropped to 44.3%, while the broader market recorded 45.95%, both reaching multi-year lows. Although these figures measure transaction counts instead of token volume, they highlight a structural change in exchange activity rather than confirming outright accumulation.

Despite the encouraging on-chain signals, historical trends present a more cautious outlook. Data from CryptoRank shows August has been XRP's weakest month on average, delivering returns of just 0.43% and ending in negative territory for the past four consecutive years. By comparison, XRP has posted gains every July since 2020.

Institutional demand also remains subdued. According to SoSoValue, spot XRP ETFs recorded approximately $19.6 million in net inflows during July's 21 trading sessions, with zero inflows on 11 days and net outflows on July 1 and July 8.

With exchange selling pressure easing but ETF demand still muted, XRP's performance in August will likely depend on whether fresh buying interest emerges to support a sustained recovery.