HomeNewsXRP ETF Speculation Raises Questions on Supply Pressure and Long-Term Price Impact

XRP ETF Speculation Raises Questions on Supply Pressure and Long-Term Price Impact

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  • XRP ETF approval could reduce circulating supply, storing tokens with custodians and increasing demand pressure from institutional investors.
  • BlackRock’s potential entry into XRP ETF market adds $11 trillion in asset firepower to possible future demand.

XRP may face supply-side pressure if the ETFs tied to the asset receive approval. According to a recent statement from a market analyst on the Good Morning Crypto podcast, such a move could remove large volumes of XRP from active circulation, potentially increasing price due to reduced availability.

 

The analyst explained that XRP held in ETF structures would be stored with custodians and removed from the open market. He described this mechanism as operating like a “vacuum,” gradually decreasing the liquid supply. As demand builds from institutional and retail channels, and if regulatory conditions become more defined, the analyst suggested that XRP’s price could respond accordingly.

Currently, there are 18 XRP ETF filings under review. Market speculation has also grown around BlackRock’s potential entry into this space. The firm manages over $11 trillion in assets, and its participation would likely generate heavy demand for the token.

At the same time, regulatory developments remain central to the conversation. The possibility of a more crypto-friendly stance under a future Trump administration has prompted discussion around increased commercial usage. The analyst argued that a clearer legal environment could support XRP’s application in everyday payments.

If businesses begin to use XRP for routine settlement while ETFs simultaneously remove supply, market makers may find themselves competing with asset managers for available liquidity. In this case, even small demand increases could lead to disproportionate price shifts, especially if broader access limits supply further.

XRP is currently trading near $2.08, with a reported market capitalization of approximately $121.5 billion. Analyst EGRAG Crypto recently projected that ETF approval could support a price rally up to $27 per token. This prediction assumes high institutional participation and a shift in market perception following regulatory clarity.

Separately, ongoing litigation between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) is currently paused. A 60-day hold on proceedings is in effect, with observers expecting resolution sometime between July and August. Any legal outcome could affect how ETFs are evaluated and how institutional investors view the asset’s compliance status.

While market activity continues to reflect short-term trading patterns, attention remains on policy developments, ETF application outcomes, and Ripple’s legal standing. Each of these elements may play a role in determining XRP’s direction throughout the second half of the year.

XRPUSD_2025-04-19_23-13-13
Source: Tradingview

XRP (Ripple) is currently trading at $2.08, showing a minor daily dip of -0.22%, and continuing to consolidate below the key resistance zone of $2.20–$2.23. Despite this sideways action, XRP has maintained a 0.21% year-to-date gain and a strong 314% increase over the past year, indicating long-term strength despite short-term volatility.

Over the past month, the token has corrected approximately 14.39%, though price action suggests the possibility of a bullish breakout as it forms a symmetrical triangle pattern.

Technically, XRP is still moving within a downward trend channel, but there are early signs of structural tightening and potential breakout pressure.

XRPUSD_2025-04-19_23-14-11
Source: Tradingview

The $2.07 level is seen as a short-term support, and should the price break above $2.23 with volume, XRP could extend toward $2.55 or even $3.00. If support at $2.07 fails, price may revisit $1.92–$1.95, which has previously acted as a strong high-volume accumulation zone.

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Isai Alexei
Isai Alexei
As a content creator, Isai Alexei holds a degree in Marketing, providing a solid foundation for the exploration of technology and finance. Isai's journey into the crypto space began during academic years, where the transformative potential of blockchain technology was initially grasped. Intrigued, Isai delved deeper, ultimately making the inaugural cryptocurrency investment in Bitcoin. Witnessing the evolution of the crypto landscape has been both exciting and educational. Ethereum, with its smart contract capabilities, stands out as Isai's favorite, reflecting a genuine enthusiasm for cutting-edge web3 technologies. Business Email: [email protected] Phone: +49 160 92211628
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