CRYPTO RALLY PREDICTION: XRP DEMAND SURGE COUPLED WITH COINBASE DUMP COULD SEE PRICE RALLY TO $5
XRP is a cryptocurrency that is facing a hefty XRP supply crunch which the market seems to think is a strong prerequisite for a powerful XRP price rally. In what seems to be a worrying development for the broader crypto market, XRP reserves on the Coinbase exchange seem to have plummeted falling by a whopping 90% in the last 3 months, analysts believe that if such a trend continues, XRP will easily surpass the $5 mark with the constant support from Ripple’s treasury reserves and institutional investors.
90% Decline in 3 Months has XRP on the Verge of RALLY
Detectable on-chain metrics from XRPWallets suggest a worrying trend for the entire crypto market Coinbase appears to be systematically liquidating cold storage accounts. In June 2025 Coinbase had a pair of accounts that held more than 52 XRP wallets in aggregate.
With Ripple falling in the mid 2025 mark, that number had plummetted to six, confirming a 90% decline. These figures suggest that Coinbase is aggressively on the XRP, which has been a worrying sight for many traders.
Even with there being a total supply of 100 billion tokens of XRP, analysts are currently predicting a supply shock due to an increased demand for XRP treasuries, ETFs, and growing institutional adoption.
At the moment, Trident Digital Tech Holdings, VivoPower International, and Wedbush International are among 8 firms with a treasury strategy that involves XRP. All of them hold more than $100 million of the cryptocurrency, which begs the question of what impact the growing institutional interest will have on the supply of XRP.
ETF-driven Developments Increase Institutional Demand*
XRP demand is partly driven by a flurry of ETF applications, which helps XRP’s institutional sentiment. Currently, eleven spot XRP ETFs are pending SEC approval, with major firms like Bitwise, Grayscale, Fidelity, VanEck, Franklin Templeton, and ARK Invest. Analysts expect the Rex-Osprey XRP ETF, which is set to launch this week and is probably the first to obtain a license to an ETF, will drive demand and upward pressure will be seen on XRP.
Increasing Utility and Market Momentum
XRP is being adopted more for cross-border payment, settling tokenized real-world assets, bridging stablecoins, settling interbank transactions, and it various applications in the DeFi space. Data from Coinglass shows XRP is currently among the most traded currencies, with users pushing XRP’s daily volume to $5.7 billion, an increase of 12.47%.
According to the crypto analyst Dark Defender and his Elliot Wave technique of charting analysis, XRP is potentially breaking the first level of weekly resistance which means that his price targets of $\4.39 and $\5.85 based on his Fibonacci analysis could be in play as well. His support levels are at $\3.01 and $\2.85, which provides a good indication of support in the volatility of the crypto market.
Many experts believe XRP could be on the verge of a tremendous breakout due to the Coinbase XRP reserves being at an all-time low as well as the rising institutional demand and strong utility demand. This could mean that XRP is on a course to reach the \$5 mark in the upcoming weeks.
Conclusion
A meaningful supply squeeze is facing XRP as highlighted by Coinbase’s XRP reserves that dropped more than 80% in only three months. Along with Coinbase, XRP supplies, from what is discernible, are much lower, increasing both demand and the XRP’s price.
To add, XRP is’s utility rises from the payments that are cross border, the DeFi market, and settlements for tokenized assets.
Market signs, in particular from Volume and Open Interest analysis together with certain trading analysis XRP stands to rally on the imminent future with price estimates around 5$. It is an asset worth holding and tracking in the following months.
