Binance Reserves Plunge to Low as XRP Teeters at Critical $1.95 Support
As of December 25, 2025, the cryptocurrency XRP finds itself at a critical technical juncture, with its price precariously hovering near the $1.95 level. This price point represents a significant monthly and weekly support zone, making its defense paramount for the asset's near-term bullish structure. The situation is underscored by a notable on-chain development: exchange reserves of XRP on Binance have plummeted to their lowest levels since July 2024. This substantial withdrawal from a major centralized exchange can be interpreted through multiple lenses. Historically, a decline in exchange reserves often signals a reduction in immediate selling pressure, as tokens move into private wallets for long-term holding (hodling) or staking. However, in the context of a key support test, it also reflects heightened caution and potential capital rotation among large holders. The technical picture reveals high stakes. A decisive and sustained breach below the $1.95 support could trigger a cascade of stop-loss orders and algorithmic selling, potentially catalyzing a downward move toward the next major support area around $1.60. Such a decline would represent a significant correction from recent highs and could dampen market sentiment. Conversely, a strong rebound from this level, especially if accompanied by increasing trading volume, could validate the support and fuel a bullish reversal. The next major resistance target in such a scenario would be near $2.70, offering substantial upside potential for traders. Adding to the technical concern is the analysis of longer-term momentum. The monthly price chart indicates that XRP is in a precarious position relative to its long-term trend ribbon, a composite momentum filter used by analysts. Historically, losing this ribbon's support has been a precursor to severe and prolonged declines in the asset's price. This overarching trend indicator suggests that while short-term bounces are possible, the broader momentum structure requires careful monitoring. For bullish practitioners, the current setup presents a classic high-risk, high-reward scenario. The confluence of a major support level and a sharp drop in exchange reserves creates a potential inflection point. A successful hold at $1.95, confirmed by a bullish weekly close, could be seen as a powerful signal of accumulation and strength, setting the stage for the next leg up. The coming days will be crucial in determining whether this key level will act as a springboard or a trapdoor for XRP's price action.
XRP on the Edge: $1.95 Support Critical as Binance Reserves Hit 2024 Low
XRP teeters NEAR a pivotal monthly and weekly support level at $1.95, with Binance exchange reserves plunging to their lowest since July 2024. A breach below this threshold could catalyze a drop toward $1.60, while a rebound might propel the token toward $2.70. The monthly chart reveals a precarious position: losing the trend ribbon—a long-term momentum filter—has historically preceded severe declines, including drops of 65% in 2018 and 54% in 2022.
Weekly metrics underscore the pressure, with XRP trading below both the downtrend line and key exponential moving averages. The $1.95 zone, aligned with the 0.5 Fibonacci level and 89-week average, now serves as the battleground for bulls and bears. Market participants await a confirmed monthly close beneath the trend ribbon, which could signal the onset of a prolonged downtrend.
Bitcoin Experiences Flash Crash on Binance Amid Low Liquidity Concerns
Bitcoin's price briefly plummeted to $24,111 on Binance's BTC/USD1 pair on December 25 before sharply rebounding to $87,000. The dramatic swing underscores the vulnerabilities of low-liquidity trading pairs in cryptocurrency markets.
The incident occurred during off-peak trading hours, when thin order books amplified price movements. Binance's USD1 pair, a recently launched stablecoin market, exhibited particular sensitivity due to limited depth. Such volatility events raise questions about risk management protocols across exchanges.
Market participants note these flash crashes increasingly occur during periods of reduced activity. The crypto industry continues grappling with liquidity fragmentation as regulatory uncertainty persists. Trading venues face mounting pressure to implement safeguards against extreme price dislocations.
