- Massive liquidity, ETF approvals, and shrinking supply could boost XRP.
- Institutional demand rises as exchanges report steep XRP outflows.
- XRP poised for major price shift amid tightening market conditions.
According to FeFe, XRP could witness one of its most eventful weeks as major financial and regulatory changes unfold. The crypto commentator noted that a potential reopening of the U.S. government could inject about $300 billion in liquidity into the market, a move that could fuel large-scale crypto inflows.
Furthermore, FeFe suggested that the Securities and Exchange Commission could green-light up to seven XRP exchange-traded funds (ETFs) if current trends align with market expectations. This possibility has stirred strong optimism within the crypto community.
Analysts speculate that such ETF inflows might attract around $15 billion in investments, which could permanently remove between six and eight billion XRP from exchanges if realized.
Meanwhile, exchange reserves are already showing signs of significant depletion. FeFe noted that South Korea’s Upbit has recorded a decline of about five billion XRP, while Bitstamp’s holdings have fallen below ten million tokens. These rapid drops suggest rising accumulation pressure and limited availability of XRP on major trading platforms.
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Rising Institutional Demand and Market Shifts
Besides declining exchange balances, institutional activity appears to be intensifying. Evernorth’s over-the-counter desk is reportedly absorbing much of the sell-side volume, a sign that larger investors are quietly positioning themselves for potential market shifts. Consequently, many traders now believe XRP could establish a new price floor around $10 if demand continues to outpace supply.
Additionally, ETF participation could transform the asset’s market behavior. As traditional investors gain regulated access to XRP, demand may rise steadily while available supply remains tight. This dynamic could reshape liquidity patterns and strengthen long-term support levels.
Moreover, analysts are watching closely to see how this week’s developments influence trading sentiment. Massive inflows from ETFs and renewed institutional interest could create a more stable market structure for XRP.
Overall, the week ahead may define XRP’s next phase of growth. With growing liquidity, ETF inflows, and shrinking exchange reserves, market participants anticipate a potentially pivotal period for the digital asset.
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