Analyst Predicts XRP Supply Crisis May Trigger Parabolic Price Rally

An analyst highlights a potential significant rally in XRP as it approaches its Exchange-Traded Fund (ETF) debut. The balance of XRP on major exchanges is decreasing, raising concerns about a supply shortage that could drive prices up.

XRP Supply Shortage and Price Surge

XRP reserves on Binance have dropped to around 2.79 million tokens, continuing a decline since early 2025.
The price of XRP has remained stable between $2 and $3 despite the decreasing supply.
The imbalance between supply and demand may lead to a bullish price movement.

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JPMorgan analysts predict that $4 to $8 billion could flow into the upcoming XRP Spot ETFs, highlighting anticipated institutional interest. This increased demand, coupled with limited liquidity, could result in a significant price increase for XRP.

The US Securities and Exchange Commission (SEC) approval for XRP Spot ETFs is pending, but there is confidence among analysts that they will launch soon.

Binance XRP Reserve Data Insights

As of November 12, 2025, XRP reserves on Binance stand at approximately 2.785 billion tokens, down from 2.795 billion the previous day.
In October, reserves dipped to one of the lowest levels in nearly a year at 2.74 billion tokens.
Recent trends suggest selling pressure has eased, possibly indicating accumulation away from exchanges.

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