XRP is facing a notable shift in market structure after the Binance Scarcity Index fell to its lowest level since January 2025. The reading has dropped from a two-year high of 0.77 in July to -0.94, according to CryptoQuant data cited by market analysts. This indicates that XRP supply on Binance has become more abundant, making selling potentially easier and tilting short-term price expectations more cautious. As trader commentary noted, higher scarcity usually corresponds with lower selling pressure, so the decline is seen as a supply-side headwind.
At the time of reporting, XRP was trading near $1.50, down more than 1% over 24 hours, with roughly $3.7 billion in daily volume. The token recently bounced near $1.47 after a roughly 9.7% pullback from its weekly high. Market participants are watching $1.47 as the nearest support and $1.55 as the first significant resistance; a sustained break above $1.55 could open a conditional path toward $2. Open interest in XRP derivatives reportedly reached its highest level since August 2025, creating a crowded setup that could amplify moves in either direction.
The broader crypto tape remains mixed, and traders are reassessing whether demand can absorb the increased tradable supply. A hold above support keeps a recovery scenario alive, while a decisive loss of $1.47 could pressure leveraged longs. XRP powers the Ripple network, which focuses on fast, low-cost cross-border payments, and Binance remains a key venue for XRP liquidity.
