A prominent crypto analyst, known as Cheeky Crypto, has highlighted a marked shift in XRP’s market environment, citing data that points to significant withdrawals from centralized exchanges and increased accumulation by large holders, often referred to as whales. The analyst, recognized for his digital asset coverage and educational content, moved to an unscripted, walking commentary format to discuss what he considers to be early signals of a potential XRP supply squeeze.
XRP reserves decline sharply on major exchanges
Cheeky Crypto’s analysis centers on the decreasing supply of XRP available on leading cryptocurrency exchanges, combined with a year of lackluster price action. His data shows that Binance’s XRP reserves have fallen to roughly 2.21 billion tokens, a figure not seen since February, with withdrawals now surpassing new deposits.
He explained that this reserve figure mostly represents assets held by users rather than coins Binance actively sells as inventory. Nonetheless, the trend of users moving XRP off exchanges suggests a collective shift toward private storage.
The Bybit platform, another major trading venue for XRP, is reportedly displaying a similar pattern, with outflows exceeding inflows. Meanwhile, Coinbase has experienced the most notable shift. According to the analyst, XRP withdrawals on Coinbase are currently about 2.3 times faster than on other exchanges, following a substantial 90% decline in XRP reserves at the platform during late 2025.
Cheeky Crypto calculates that whale wallets have accumulated roughly $4.6 billion worth of XRP from exchanges over the past twelve months. This trend suggests that large holders are consolidating their positions in long-term, off-exchange storage.
Mini dictionary: Whale wallets refer to crypto accounts holding a large quantity of digital assets, often able to influence market prices through substantial trades or transfers.
| Exchange | XRP Reserve Trend | Current Status |
|---|---|---|
| Binance | Declining | 2.21 billion XRP (lowest since February) |
| Bybit | Declining | Net outflows exceed inflows |
| Coinbase | Rapid decline | Withdrawals 2.3x faster than peers |
Demand yet to follow as sentiment cools
This tightening supply issue is unfolding during a difficult period for XRP holders. After climbing to approximately $3.66 in July 2025, XRP’s price retreated and has since moved sideways, hovering near the $1 mark. According to Cheeky Crypto, retail sentiment has cooled significantly, with many traders abandoning hopes for a sustained rally.
Retail investors are discouraged, capitulation is settling in, and the market is mostly trying to maintain support close to one dollar. Despite this, the mechanics enabling a potential supply squeeze have persisted since late 2024.
While supply on exchanges has thinned, the catalyst for a sharp price movement—a revival of institutional or retail demand—has not yet materialized. The analyst noted that the overall on-chain and exchange activity remains largely unchanged, even as underlying supply dynamics become more favorable to a possible supply shock scenario.
Mechanics in place, but no immediate move expected
Should fresh demand emerge, Cheeky Crypto predicts that any initial price increase might face skepticism, potentially leading to short liquidations and a rapid upward move as short sellers are forced to buy back in. This could produce what he describes as a “flywheel effect,” where rising prices generate further buying interest and volatility.
He also pointed out that current data from key Asian exchanges, which serve as important trading hubs for XRP, was not available, meaning the complete picture may be broader than current figures suggest.
Despite the speculative potential, he cautioned that this market structure does not guarantee an imminent surge. For participants looking beyond short-term price swings, the persistent reduction in exchange-held XRP remains a signal to watch, particularly if accompanied by renewed market activity.
The trend of declining exchange reserves alone cannot trigger a rally without strong new demand. Investors should focus on broader market mechanics, watching for volume changes, withdrawals, and shifting sentiment as potential catalysts.
Storage strategies and risk awareness
Cheeky Crypto also highlighted operational risk, advising users to diversify holdings across platforms and utilize cold storage to reduce the danger of losing funds in the event of exchange failures. He advocated for a redundancy strategy, distributing assets to minimize single-point vulnerabilities during volatile markets.
