XRP Flashes 2 Bullish On-Chain Signals Heading Into August

XRP (XRP) gained over 3.8% in July, snapping a two-month losing streak. The token still trailed other large caps, with Bitcoin (BTC) adding about 9% and Ethereum (ETH) around 20%.

As August begins, two on-chain signals point to fading sell pressure. However, the month has historically offered XRP little support, and institutional demand through ETFs remains thin.

XRP Exchange Data Shows Sellers Stepping Back

In a post on X, analyst Darkfost noted that XRP inflows to Binance have fallen to a record low. According to the analyst, average monthly inflows to the exchange have dropped to roughly 3.6 million XRP. 

While the figure remains significant in absolute terms, it marks the lowest monthly inflow ever recorded. Darkfost said the trend suggests that XRP holders are showing little willingness to move tokens onto exchanges for sale, pointing to an exhaustion of selling pressure. 

He added that the reduced pressure could help XRP establish stronger price support above $1.

“What remains to be seen is whether a genuine rebound in demand will follow this lull on the sell side, a condition that appears necessary to spark a sustainable bullish trend,” the analyst added.

Follow us on X to get the latest news as it happens

Meanwhile, another on-chain analyst reported a sharp increase in XRP withdrawals from exchanges. Withdrawal transactions accounted for 55.6% of XRP activity on Binance over the past seven days as of July 31, the highest share since February 2021.

Across all centralized exchanges, the figure reached 54%, confirming the shift extends beyond a single venue. 

Deposit transactions moved the opposite way. Binance’s deposit share slipped to 44.3%, while the market-wide figure fell to 45.95%. Both readings mark multi-year lows.

The metric tracks transaction counts rather than XRP volume or net flows. It signals a structural change in exchange behavior but does not, on its own, confirm accumulation.

August Seasonality and ETF Flows Cloud the Setup

Yet, history gives buyers less comfort. August is XRP’s flattest month on record, averaging returns of just 0.43%, and it has closed red for four straight years. That seasonality contrasts with July, which XRP has closed green every year since 2020.

Institutional appetite offers little counterweight. Spot XRP ETFs attracted only about $19.6 million in net inflows across July’s 21 trading days, according to SoSoValue data. Flows registered zero on 11 of those days, while July 1 and July 8 saw outright outflows. 

The on-chain picture suggests sellers have largely stepped aside above $1. Whether dormant ETF desks and a historically quiet month allow demand to return will define XRP’s August.

Subscribe to our YouTube channel to watch leaders and journalists provide expert insights