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XRP Exchange Reserves Drop to Seven-Year Low Amid ETF Demand
The XRP market is showing potential signs of future price changes despite its current bearish trend. Key points include:
- Exchange reserves have decreased to a seven-year low of 1.7 billion XRP, suggesting tightening liquidity.
- Three factors likely to influence XRP's price by 2026 are regulatory clarity, investor demand through spot ETFs, and real-world adoption of the XRPL network.
- XRP ETF products in the US attracted significant inflows initially, indicating a shift from speculative to structural investment strategies.
- As per 21Shares, XRP's smaller market cap compared to Bitcoin could mean a larger impact on price due to proportionally higher capital inflows.
XRP Price Projections for 2026
- The report outlines possible scenarios for 2026: a base case peak of $2.45, a bull case of $2.69, and a bear case of $1.60.
- The base scenario expects steady ETF inflows and gradual utility improvement.
- The bull scenario anticipates institutional tokenization and reduced liquid supply enhancing pricing.
- The bear scenario considers stagnant adoption and capital moving away from XRP.
Currently, XRP's price is hovering around the bear case, with challenges in maintaining levels above $1.6. 