Analyst Predicts XRP “Supply Crisis” To Trigger The Next Parabolic Rally

Overview

An analyst has raised concerns about an impending supply crisis for XRP, which could lead to a significant price rally. As the cryptocurrency approaches its anticipated Exchange-Traded Fund (ETF) launch, the balance of XRP on major exchanges has been steadily decreasing, prompting speculation about future price movements.

Supply Crisis and Its Implications

The analyst, identified as Arthur, has highlighted that the decline in XRP reserves on exchanges could signal a supply crisis. Recent data reveals that XRP reserves on Binance have dropped to approximately 2.79 million tokens, continuing a trend that began in early 2025. Despite XRP’s price remaining relatively stable between certain levels, the available supply on major exchanges has been significantly reduced.

Arthur pointed out that this reduction in supply indicates a growing imbalance between supply and demand, which could set the stage for a bullish price movement. He also referenced a prediction from JPMorgan analysts, who suggested that a substantial amount of capital could flow into upcoming XRP Spot ETFs. This expectation reflects confidence in XRP’s institutional demand as a digital asset.

Moreover, the anticipated launch of XRP ETFs is expected to spur both institutional and retail demand. Even though approval from the US Securities and Exchange Commission (SEC) is still pending, some analysts remain optimistic about the imminent launch of these investment products.

Binance XRP Reserve Data

Recent data from CryptoQuant indicates that Binance’s XRP reserves were at approximately 2.785 billion tokens as of a specific date. This figure represents a decrease of over 10 million tokens from the previous day. The trend shows that since the beginning of November, Binance’s XRP balance has been declining, with levels just above the 2.7 billion token mark. Earlier in October, reserves had dipped to 2.74 billion tokens, marking one of the lowest levels in nearly a year. While there was a brief rebound in mid-October, the latest data indicates a renewed downward trend, suggesting that selling pressure may have decreased and accumulation could be occurring off exchanges.

Impact on the Crypto Market

• The anticipated XRP supply crisis could lead to increased price volatility.
• A significant influx of capital into XRP Spot ETFs may enhance institutional interest in the cryptocurrency.
• The decline in XRP reserves on exchanges may create a favorable environment for price appreciation.
• Growing retail demand for XRP could further contribute to potential upward price movements.
• The overall market sentiment may shift positively if the ETF approvals occur as expected.

Updated: 11/13/2025, 11:21:51 PM