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XRP price holds $1.30 as exchange reserves plunge sharply

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XRP holds $1.30 support as exchange reserves plunge — Is a supply crunch forming? - 1

XRP price is holding near a critical support level as exchange reserves fall sharply, a development that could tighten available supply in the market.

Summary

  • XRP trades near $1.38 while defending the $1.30 support zone after a month-long decline.
  • Binance XRP reserves dropped from over $10B in 2025 to about $3.9B, reducing potential selling supply.
  • Technical indicators show consolidation, with $1.42 acting as the key level for a possible recovery.

XRP (XRP) was trading at $1.38 at press time, down 3.1% over the past 24 hours. The token moved within a weekly range of $1.28 to $1.46 and has lost about 17% over the past month.

It now sits more than 60% below its July 2025 all-time high of $3.65. Market activity has also cooled.

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Trading volume dropped to $2.28 billion in the last 24 hours, down 38% from the previous day. Data from CoinGlass shows derivatives volume fell 26% to $3.58 billion, while open interest slipped 2.69% to $2.33 billion, showing that some traders are closing or reducing positions.

Exchange reserves drop sharply

An March 6 analysis by CryptoQuant contributor Amr Taha reveals that the amount of XRP held on Binance has dropped sharply in recent months.

Exchange reserve data measures the total value of a particular asset sitting on a trading platform. For XRP on Binance, the metric reflects the dollar value of all tokens stored on the exchange.

That number changes depending on two things: how many coins users keep on the platform and the current market price of XRP.

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The latest figures show that XRP reserves on Binance are now worth around $3.9 billion as of March 6. Not long ago, the value was much higher. In both January and July 2025, reserves briefly climbed above $10 billion before starting their current decline.

Large token balances on exchanges are often viewed as a sign that selling pressure could increase. When large amounts of a token sit on an exchange, traders can easily sell them, which may increase potential selling pressure.

When those balances decline, it often means investors are moving their holdings to private wallets, reducing the supply available for trading. (f demand stays steady while fewer tokens remain on exchanges, the tighter supply can help support prices and may even create upward pressure for XRP. 

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XRP price technical analysis

From a chart perspective, XRP may be finding its footing after a long stretch of downward movement.

The area between $1.30 and $1.32 has started to act as a key short-term support level. At one point the price slipped below $1.30, but the drop didn’t last long. Buyers quickly stepped in, and several daily candles managed to close back above that range.

XRP holds $1.30 support as exchange reserves plunge — Is a supply crunch forming? - 1
XRP daily chart. Credit: crypto.news

That kind of reaction usually signals that traders are defending the level. Even so, XRP hasn’t yet regained the middle line of the Bollinger Bands, which lines up with the 20-day moving average around $1.40 to $1.42.

As long as the price remains under that mark, short-term momentum still leans slightly bearish. Volatility has also begun to ease. After February’s sharp decline, the Bollinger Bands have narrowed considerably.

This kind of tightening often appears when the market is moving sideways. Historically, these periods of compression tend to come before a larger move once volatility returns.

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Momentum indicators are beginning to show modest improvement. The relative strength index, which previously fell to deeply oversold levels near 25, has rebounded to around 44. A move above the neutral 50 mark would signal strengthening bullish momentum.

Even so, the broader trend remains unchanged. Since the peak reached in January, XRP has continued to form lower highs, a classic sign that the downtrend is still technically in place. A decisive break above the $1.50 to $1.60 resistance area would be needed to shift that structure.

The $1.30 support is still the crucial level to keep an eye on for the time being. XRP may attempt a reversal toward $1.50 or even $1.60 if buyers are able to hold it and push the price back above the $1.42 mid-band. However, the next downward targets might show up at $1.20 or even $1.10 if the support gives way.

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Crypto World

Vitalik Buterin Proposes Human-Verified AI Wallets for Crypto Transactions

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Vitalik Buterin Increases ETH Selling as Price Falls Below $2K


Buterin proposed AI-assisted wallets where algorithms suggest transaction plans but users must manually confirm large transfers.

Vitalik Buterin has outlined his perspective on how artificial intelligence (AI) could redefine the next generation of Web3 wallets.

He also proposed a model where humans remain directly involved in approving high-value transactions.

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AI Will Shape Newer Crypto Wallets

The Ethereum co-founder shared his views on the decentralized social media platform Farcaster, noting that it is “pretty obvious” that the next iteration of wallets will heavily involve AI.

Despite this, Buterin added that he would not trust LLMs with multi-million-dollar transactions or control over large amounts of money. Instead, he gave an approach in which AI systems assist users while leaving the final decision in human hands.

He described an optimal workflow in high-value situations that would involve an AI system proposing a plan, after which a local light client simulates the transaction. The person would then review the intended action and the required outcome before manually confirming it.

However, Buterin warned that this approach must be implemented conservatively with a strong emphasis on security. He suggested that one way to achieve this is by removing decentralized application interfaces from the transaction process. By eliminating dApp user interfaces from the flow entirely, the system could reduce several attack vectors associated with theft and privacy risks.

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The 32-year-old has previously discussed how cryptocurrency and AI could evolve together. He envisions blockchains and the technology working hand-in-hand, with crypto providing the trust, privacy, and economic infrastructure that it needs to operate safely and fairly.

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Proposed AI-Assisted Wallet Workflows

Other developers and community members responded to Buterin’s comments by describing potential implementations of the idea.

Ethereum developer Andrey Petrov suggested two additional scenarios. In the first, a user initiates a transaction as usual while AI analyzes the payload about to be signed. The technology would then attempt to guess their intended action and explain it in plain language, allowing them to confirm whether the transaction accurately reflects what they meant to do.

In the second case, the user either states their intended action directly or relies on the explanation generated in the first step. The AI then tries to reconstruct the transaction independently, without referencing the original amount, to determine whether it arrives at the same outcome. He explained that any differences between the two would show areas that require further review before the process is finalized.

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Another Farcaster user, identified as fkaany, described a framework in which AI plans complex crypto strategies such as multi-hop swaps, yield optimization, and gas minimization.

This would involve a local light client simulating the outcome, which would allow individuals to review a clear summary and manually confirm the transaction, helping reduce risks from blind signing, phishing interfaces, and malicious dApp payloads.

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Vitalik Buterin Backs Minimmit Over Casper FFG for Ethereum’s Consensus Layer

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Nexo Partners with Bakkt for US Crypto Exchange and Yield Programs

TLDR:

  • Minimmit achieves finality in one signing round, replacing Casper FFG’s two-round justification and finalization process. (truncate to fit — 105 chars)
  • The new gadget lowers fault tolerance from 33% to 17%, but raises the unilateral censorship threshold from 67% to 83%.
  • Buterin argues censorship poses a greater threat than finality reversion, as it lacks immediate, verifiable on-chain evidence.
  • Minimmit requires 83% of clients to share a bug before incorrect finalization occurs, giving developers a wider safety margin.

Minimmit has been put forward as a direct replacement for Casper FFG within Ethereum’s consensus layer. Ethereum co-founder Vitalik Buterin recently shared a detailed technical post comparing both finality gadgets.

Casper FFG has long served as a two-round finality mechanism on the network. The proposed system, by contrast, achieves finality in a single round of validator signatures.

The proposal is drawing attention as the Ethereum community continues to evaluate changes to its consensus architecture.

Why the New System Operates in a Single Round

Casper FFG asks each attester to sign a block on two separate occasions. The first signature “justifies” the block, and the second “finalizes” it.

Minimmit cuts this down to a single signing round. This makes the process more efficient for validators across the network.

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The change comes with a direct cost to fault tolerance, though. The new system’s threshold sits at 17%, compared to 33% under Casper FFG.

A smaller portion of malicious stake can therefore disrupt finality under the new model. Still, Buterin’s post makes the case that other properties of the system more than offset this drop.

In the post shared on X, Buterin described himself as a long-standing “security assumptions hawk” in Ethereum’s consensus research. He cited his past push for 49% fault tolerance under synchrony.

He also referenced his work on DAS for dishonest-majority-resistant data availability checks. Despite this record, he stated he is “even enthusiastic” about the proposed design.

The asynchronous network case also differs between the two systems. Under ideal 3SF, finality holds as long as an attacker controls less than 33% of stake.

The proposed gadget lowers that same protection to 17%. In both cases, any reversion of finality triggers massive slashing penalties against offending validators.

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Censorship Resistance and the Broader Security Picture

Buterin’s argument centers on identifying censorship as the more dangerous threat. Unlike finality reversion, censorship produces no immediate, publicly verifiable evidence against the attacker.

A reversion event, on the other hand, results in automatic, large-scale slashing. This asymmetry is a core reason behind his support for Minimmit’s design.

Both systems require an attacker to control over 50% of staked ETH to carry out censorship. The key distinction lies in what happens at higher thresholds.

In 3SF, an attacker above 67% can finalize the chain unilaterally, removing any coordination point for honest validators. The new system raises that threshold to 83%.

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Software bugs present another area where the proposed gadget holds an advantage. Under 3SF, a flaw shared by 67% of client software can accidentally finalize an incorrect chain state.

Minimmit raises that bar to 83%. This wider margin gives developers more time to identify and respond before errors become permanent.

Buterin also addressed the economic argument against finality reversion attacks. With 15 million ETH staked, reverting finality under 3SF would require slashing 5 million ETH, or roughly $10 billion.

He noted that the 17% baseline still represents an enormous deterrent on its own. From there, he argues the proposed system’s other properties make it the stronger overall consensus design for Ethereum.

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Ex-CFO Sentenced to Two Years after Diverting $35M to Crypto Venture

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Ex-CFO Sentenced to Two Years after Diverting $35M to Crypto Venture

Nevin Shetty was convicted of wire fraud related to secretly moving $35 million in funds from a Seattle startup to his own crypto platform in 2022 to use for DeFi investments.

A Seattle judge has sentenced the former chief financial officer of a local startup to two years in prison following his conviction for wire fraud related to a cryptocurrency business.

In a Thursday notice, the US Justice Department said Nevin Shetty would serve two years in prison after he “secretly moved approximately $35 million in company funds to a cryptocurrency platform he controlled as a side business.” He moved the funds to the HighTower Treasury platform in 2022 before a crypto market downturn, resulting in the disclosure of the transfer. 

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According to the DOJ, Shetty was able to transfer the funds without any executives or board members at the Seattle startup knowing about it, then using the money to invest in “high-yield DeFi lending protocols that promised to generate returns of 20% or more.” He initially earned $133,000 in the first month before the collapse of the Terra ecosystem contributed to a significant market downturn. 

“[T]he cryptocurrency investments that Shetty made with the stolen funds soon began declining and by May 13, 2022, the value of the investments was nearly zero,” said the DOJ. “After the $35 million was essentially gone, Shetty told two of his fellow executives what he had done. He was immediately fired.”

Shetty was indicted on charges of wire fraud in May 2023 and found guilty on four counts in November 2025 after a nine-day jury trial. He has been ordered to pay back the stolen funds and be on supervised release for three years after serving his two-year sentence.

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Related: Analysts reject Jane Street ‘10 a.m. dump’ claims, say Bitcoin isn’t easily manipulated

Former FTX CEO is still waiting on an appeal

Shetty’s 2022 case happened months before the collapse of cryptocurrency exchange FTX, which later resulted in the arrest and conviction of its former CEO, Sam “SBF” Bankman-Fried. SBF was sentenced to 25 years in prison in 2024 but has filed to appeal the ruling. As of Friday, the US Court of Appeals for the Second Circuit had not announced any decision since it heard arguments in November.