The post XRP Faces Liquidity Crunch on Binance: Impact on Price appeared on BitcoinEthereumNews.com.

XRP has suffered a dip in trading activity on the world’s largest cryptocurrency exchange, Binance. As per a recent update shared by a chartist, Steph is Crypto, XRP’s 30-day liquidity index on Binance has dropped to 0.097 from over 3 points during the 2022-2024 trading cycles. XRP whale activity could decide price direction Notably, a sharp drop in the liquidity index signals thinner order books and leaves an asset’s price prone to volatility. That is, there are fewer buy and sell orders, and the market depth is thinner than in previous market cycles. The continued volatility of XRP’s price has triggered caution among traders. This has left fewer participants in the market space that are actively trading the coin. This development places XRP in a pivotal position for a possible uptick in price. Generally, when liquidity is high, large orders get absorbed easily, and price movement is slower and more gradual. However, with XRP’s liquidity index on Binance far below 1 point, a large buy order can quickly accommodate the existing sell order. This can lead to a price spike, and XRP can witness a positive shift in price momentum. In order for this to happen, XRP whales need to step in and accumulate a large amount of XRP at the current reduced price. It is only then that the coin could rapidly gain in price. JUST IN: $XRP liquidity on Binance just collapsed. The 30-day liquidity index fell to 0.097, down from 3+ during the 2022–2024 trading cycles. Less XRP is being traded — which means big buyers can move the price much faster. pic.twitter.com/opCUVQcH0Q — STEPH IS CRYPTO (@Steph_iscrypto) March 4, 2026 On the flip side, if these large holders choose to sell, the price could crash faster than usual, as there is not much resistance in the order book.  …

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Filed under: News - @ March 4, 2026 1:27 pm