Wall Street’s ETF Push and Supply Shock Put $10 XRP Back on the Table
XRP’s supply on Coinbase has seen a drastic decline of nearly 90% in recent months, according to on-chain data. In June, the exchange held close to 970 million XRP spread across 52 wallets. However, by mid-September, that number plummeted to about 99 million XRP across just six wallets. This sharp reduction is indicative of a classic supply crunch, where large holders are pulling coins off exchanges not to sell, but to store, stake, or utilize elsewhere. With less XRP available on the market, every new buy order could have a more significant impact on the price, potentially leading to a price squeeze if demand increases while supply remains scarce.
The decreasing supply of XRP comes at a time when Wall Street is showing increasing interest in tokenization. BlackRock, under the leadership of CEO Larry Fink, has been exploring blockchain-based ETFs and tokenized assets. The Depository Trust & Clearing Corporation (DTCC) has also been linked to potential listings of altcoin-related ETFs. This growing institutional interest in tokenization could pave the way for a U.S. spot XRP ETF, which, if approved, would provide traditional investors with direct exposure to XRP and further tighten the supply.
In addition to institutional interest, macro trends are also favorable for XRP. The U.S. stock market has been hitting new highs consistently, with the Federal Reserve cutting rates near record market levels. Historically, this has led to higher prices for equities, risk assets, and cryptocurrencies like XRP. Recent multi-billion-dollar Bitcoin buys have also contributed to a broader market rally, including XRP.
From a technical standpoint, XRP has broken out of a descending wedge pattern and has achieved its first higher high in months. The current support lies around $3, with resistance near $3.35. A strong push above this level could open the door to $4-$5, with $5 serving as a significant psychological barrier. If bullish sentiment and ETF developments align with the decreasing exchange supply, XRP could potentially target $10 in a sustained rally. While profit-taking may occur at this level, the supply crunch could enable even higher valuations in a frenzy of demand.
