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XRP, the popular digital token, is once again catching the attention of investors after dramatic changes in its supply dynamics and growing institutional interest. Recent data shows that XRP’s availability on major exchanges like Coinbase has sharply declined, setting the stage for a potential supply squeeze that could push prices higher. With Wall Street exploring tokenized assets and ETFs, XRP’s rally to new price levels—including a bold $10 target—is once again being discussed.
XRP Supply Plunges Nearly 90%
On-chain metrics reveal a striking drop in XRP’s presence on Coinbase over the past few months. In June, roughly 970 million XRP were held across 52 wallets on the platform. By mid-September, that number had fallen to just 99 million XRP across six wallets.
Experts see this as a classic case of supply tightening. Large holders, often referred to as whales, withdrawing tokens from exchanges suggests they are not planning to sell immediately. Instead, they are likely storing or staking XRP or using it elsewhere within decentralized finance protocols.
With fewer coins available on the market, any new demand can create outsized price movements. A handful of new buyers could now have a stronger effect than ever before. If institutional interest or retail demand accelerates while XRP supply remains scarce, analysts say a significant price squeeze is likely.
Wall Street’s Growing Appetite for Tokenization
This supply crunch aligns with broader trends in the financial world. Wall Street is increasingly turning its attention toward digital assets, with major players laying the groundwork for new investment vehicles.
BlackRock, the world’s largest asset manager, led by CEO Larry Fink, is reportedly exploring blockchain-based exchange-traded funds (ETFs) and tokenized assets. Similarly, the Depository Trust & Clearing Corporation (DTCC), a central player in the U.S. securities market, has been linked to potential listings that include crypto-related products.
For XRP, these developments are crucial. A U.S. spot XRP ETF—though delayed—is still a hot topic among investors and analysts. Approval of such a product would offer traditional investors a direct way to gain exposure to XRP, potentially intensifying buying pressure.
The convergence of limited supply and expanded institutional pathways creates a favorable environment for XRP. As traditional finance embraces blockchain, tokens like XRP stand to benefit from renewed liquidity and investor attention.
Macro Trends Also Support Crypto Gains
The broader market backdrop is also bullish for risk assets. The U.S. stock market has registered 18 consecutive weeks of more gains than losses—a streak not seen since 2021. Historically, when the Federal Reserve cuts interest rates near record market highs, equities and risk assets like crypto tend to perform strongly in the following year.
This macroeconomic environment may be encouraging major investors to build multi-billion-dollar positions in digital assets. Recent Bitcoin purchases by institutional players have sent ripple effects throughout the crypto market, lifting altcoins including XRP.
As market participants search for yield and alternative investment opportunities, XRP’s improved fundamentals, reduced supply, and upcoming regulatory developments make it an attractive option.
Technical Outlook: Breaking Out Toward Higher Levels
On the technical side, XRP has shown signs of renewed strength. The token recently broke out of a descending wedge pattern and formed its first higher high in several months. Analysts note that XRP’s price is currently finding support around the $3 level, with the next resistance at approximately $3.35.
A sustained move above $3.35 could open the path toward $4–$5, with $5 representing a significant psychological barrier where profit-taking might increase. However, if demand remains strong and ETF headlines or macroeconomic trends continue to favor crypto, XRP could extend its rally toward $10 over the medium term.
That target is ambitious but plausible. A shrinking supply combined with bullish sentiment and increased institutional participation could create a feedback loop, driving prices higher as investors rush to acquire scarce tokens.
Risks and Considerations
While the outlook is promising, investors should remain cautious. XRP’s price could be volatile, particularly if broader crypto markets experience sharp corrections or regulatory setbacks. Moreover, the approval of ETFs or tokenized investment products is not guaranteed, and delays could stall momentum.
Retail investors drawn to XRP’s rally should assess their risk tolerance and avoid investing solely based on hype or speculation. As seen in past crypto cycles, excessive leverage and impulsive buying can lead to sudden downturns.
A Renewed Case for XRP
Despite the risks, XRP’s current trajectory is compelling. The dramatic reduction in available supply, combined with growing Wall Street interest and supportive macro trends, creates a rare alignment of factors that could propel XRP to new heights.
If XRP’s supply squeeze intensifies and demand surges, reaching a $10 price level might not be out of reach. Even if short-term fluctuations occur, the long-term outlook appears promising as institutional frameworks, investor confidence, and regulatory clarity continue to evolve.
For investors keeping a close eye on market movements, XRP’s story is once again at the forefront—where scarcity, innovation, and opportunity intersect.
