TLDR
- Two XRP-focused ETFs have been rapidly accumulating XRP, potentially tightening the supply on public exchanges.
- CryptoSensei estimates that the combined absorption from these ETFs could reach around 1.23 billion XRP by the year-end.
- The growing institutional demand for XRP could lead to upward pressure on the XRP price due to reduced supply on exchanges.
- CryptoSensei emphasized that much of the liquidity currently flows through OTC channels, which may soon be exhausted.
- As liquidity from OTC channels diminishes, market participants will increasingly rely on public exchanges to acquire XRP.
Crypto analyst CryptoSensei recently provided an assessment of XRP’s market outlook, highlighting institutional demand and ETF accumulation. The analyst discussed the impact of two XRP-focused exchange-traded funds (ETFs) on the market and forecast substantial price movements for XRP. The funds have been rapidly accumulating XRP, potentially tightening supply and pushing the XRP price higher.
XRP ETFs Accumulating at Rapid Rate
CryptoSensei emphasized the pace at which the two XRP-focused ETFs have been acquiring the cryptocurrency. The funds have already established a trend of consistent accumulation, according to the analyst’s observations. If the current purchase rate continues, these products could collectively absorb approximately 1.23 billion XRP by the end of the year.
The analyst made it clear that this estimate is conservative and based solely on existing inflows. CryptoSensei explained that the growing demand for XRP through institutional products could lead to tighter supply on exchanges. As a result, XRP’s price may rise as demand continues to outpace supply.
Furthermore, CryptoSensei pointed out that much of the current liquidity is flowing through over-the-counter (OTC) channels and undisclosed trading systems. The analyst noted that when these sources are exhausted, market participants will increasingly rely on public exchanges. This shift, according to CryptoSensei, could cause further strain on the available supply of XRP.
Exchange Supply Could Tighten
CryptoSensei predicted that as institutional demand increases, XRP’s supply on public exchanges could tighten. He explained that as liquidity from OTC channels and private markets dwindles, XRP buyers will have fewer options to acquire the cryptocurrency. This could reduce circulating supply on exchanges, putting upward pressure on the XRP price.
The analyst stressed that this shift in market dynamics could result in XRP’s price recalibrating. As institutional demand continues, buyers might find themselves competing for the limited XRP available on public exchanges. CryptoSensei did not provide specific price targets but acknowledged that the market could experience unforeseen price movements due to tightening supply and growing institutional interest.
The analyst’s assessment reflects an ongoing trend in the XRP market, in which institutional products are gradually absorbing liquidity. CryptoSensei also highlighted that price levels like $10, $20, or $50 could become significant thresholds for retail investors looking to sell their XRP holdings. However, the analyst also acknowledged that such price points would vary depending on individual holders’ long-term expectations.
Long-Term Outlook for XRP Price
Despite the uncertainty surrounding future XRP price valuations, CryptoSensei emphasized the importance of monitoring how institutional demand and market supply evolve. He noted that the future trajectory of XRP price depends heavily on the interplay between retail and institutional market participants. CryptoSensei concluded by reiterating that long-term holders should remain focused on the broader market cycles as the year progresses.
As XRP-focused ETFs continue to accumulate, the analyst’s outlook suggests that the market could experience tightening liquidity. This could lead to XRP price movements that may surprise even the most experienced market participants. The ongoing trends indicate that the XRP market remains highly dynamic, with both retail and institutional behavior playing crucial roles in shaping the future of XRP’s price.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
