XRP Supply on Coinbase Collapses: What You Need to Know
Over the past few months, XRP’s supply on Coinbase has plummeted, signaling a massive shift in market dynamics. Reports reveal that Coinbase held approximately 970 million XRP in June, spread across 52 wallets. By mid-September, that figure had dropped to just 99 million XRP across six wallets—a staggering 90% reduction. This development could have significant implications for XRP investors and the broader cryptocurrency market.
What Does a Supply Crunch Mean for XRP?
When large quantities of XRP are removed from exchanges, it often indicates that major holders intend to store, stake, or use the tokens outside of exchanges. This creates a supply crunch—less XRP available for new buyers. If demand surges while the available supply diminishes, prices could rise significantly. On-chain experts suggest this could lead to a classic “price squeeze.”
Interestingly, the move coincides with broader market shifts. Institutional players, such as BlackRock and the Depository Trust & Clearing Corporation (DTCC), are actively exploring blockchain technology, tokenized assets, and ETFs. A U.S.-based spot XRP ETF, while delayed, is a highly anticipated event that could provide easier access for traditional investors and tighten the supply even further.
Positive Macro Trends Supporting Crypto Growth
Beyond XRP, the crypto market is riding the wave of positive macroeconomic trends. The U.S. stock market has recorded 18 consecutive weeks of more highs than lows—the longest streak since 2021. This trend is accompanied by speculation about upcoming Federal Reserve rate cuts, which historically benefit risk assets like cryptocurrency.
High-profile Bitcoin acquisitions by institutional investors have further bolstered positive sentiment in the crypto sector. Since Bitcoin often leads market trends, XRP and other cryptocurrencies stand to benefit from this influx of bullish behavior.
XRP Technical Analysis and Forecast
Technical analysis shows that XRP recently broke out of a descending wedge—a bullish formation—and established its first higher high in months. Current support levels are at $3, with resistance around $3.35. Should XRP surpass this resistance level, it could target $4 to $5, with $5 as a psychological benchmark.
Looking at the broader picture, if institutional adoption deepens and supply constraints continue, XRP could rally further, targeting $10 in an extended bull market. However, such levels may also trigger significant profit-taking, potentially stabilizing the market.
Recommended Product: Ledger Nano X
For investors looking to store their XRP securely and off exchanges, a hardware wallet like the Ledger Nano X is an excellent choice. With top-tier encryption and Bluetooth connectivity, the device ensures your crypto holdings are safe from hacks.
