Ripple has announced a $750 million buyback plan for its XRP token. Analysts say the move could reduce the circulating supply and potentially support prices.
On-chain data from CryptoQuant shows XRP reserves on Binance have dropped to $3.7 billion, the lowest level in 10 months. This suggests investors are moving tokens off exchanges, possibly for long-term holding.
XRP is currently trading around $1.37. The token has been in a tight trading range since early February, with $1.50 acting as key resistance and $1.30 as support.
Corporate buybacks are often seen as a sign of confidence in an asset’s value. In crypto, such programs can tighten supply, creating upward price pressure if demand remains strong.
Despite the buyback news, Ripple has not disclosed when or how the plan will be executed. Traders are closely watching for potential market catalysts.
Earlier in 2025, Binance’s XRP reserves exceeded $10 billion during peaks. Those periods were followed by steep price drops, showing how exchange supply affects market movements.
Indicators like the Relative Strength Index show XRP currently has neutral momentum. The market may be waiting to see if the buyback and falling reserves will trigger a breakout above $1.50.
If demand strengthens while supply tightens, XRP could test higher levels. Otherwise, the token may continue trading sideways in the near term.
