With major crypto exchanges notably dropping their XRP reserves in the recent weeks, market analysts are spotting signs of an XRP price squeeze. With the first Canary ETF going live today on the traditional stock markets with the ticker XRPC, some market connoisseurs forecast a humongous liquidity influx.
Drastic XRP Price Targets Require Drastic Measures
With HBAR & SOL ETFs trading in tens of millions, XRP is potentially poised for more than that. That’s if the squeeze theory plays out – 4 billion XRP tokens would have to be purchased on the ETF opening days, accounting for 4% of Ripple coin’s (XRP) total supply, with 100B coins ever coded into existence.
According to FeFe, a popular analyst on the Crypto Twitter community with 12.2K followers, double-digit price targets like $47 are plausible if the XRP ETF nails $10 billion inflows in the first week. While this might sound wildly optimistic, Canary Capital’s CEO recently disclosed that XRP’s trading volumes would typically edge Solana (SOL) due to high institutional demand.
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With XRP’s wholesale holdings on exchanges now tumbling below 5 billion coins & big names like Coinbase dropping roughly 90% of their XRP reserves since last Summer have solidified the bullish squeeze theory. Shortly put, a digital asset skyrockets in value when institutional investors rush in to buy it along with a sharp drop on major crypto exchanges, inducing scarcity.
If the institutional inflows came slower than expected, this could have an opposite effect on XRP’s short-term price. If the inflows trickle on the institutional side, retail investors might not get the lift needed for them to buy-in. The broader market context suggests fear is still dominating against greed. The Fear & Greed Index is now flashing 15, hinting at the market soaking in fear.
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Some analysts are suggesting XRP could hit $47 this week if a big price squeeze happens, driven by strong buying pressure on exchanges, especially if new investment funds like ETFs bring in a lot of money.
A price squeeze happens when lots of people betting against XRP (short sellers) are forced to buy it back to cover losses as the price rises fast. If enough buying kicks in, like from $10 billion in ETF inflows, it could create a gap that pushes the price way up.
ETFs, or exchange-traded funds, are investment products that buy cryptocurrencies like XRP. If they need to buy more than 4 billion XRP with limited supply on exchanges (around $3 billion) and over-the-counter markets (less than $500 million), it could spike the price.
It’s a big jump from XRP’s current price, around $2.30–$2.6 based on recent trends. It would need huge buying volume and a perfect storm of market conditions, so many think it’s a long shot but not impossible if the squeeze plays out.
If you’re fresh here, don’t rush in—watch how the market moves first. Consider regularly reading DailyCoin, learning about XRP’s background, checking reliable price trackers and maybe talking to a financial advisor before investing.
