XRP News Today: Institutional Gateways Spark XRP's Secret Supply War

Analyst Vincent Van Code has highlighted an impending surge in XRP prices, attributing it to a critical upgrade in the XRP Ledger, which is expected to increase institutional demand for the asset. The upgrades include the introduction of permissioned decentralized exchanges (DEXs), which could significantly alter the supply dynamics of XRP. According to Van Code, these DEXs will allow banks and funds to engage in high-volume transactions without the need to rely on public exchanges, thereby reducing the amount of XRP available to retail investors [1].

The implementation of three key amendments is expected to support this transition: Credentials (XLS-70), Permissioned Domains (XLS-80), and the Permissioned DEX. These amendments are designed to facilitate a more regulated and secure trading environment, where only verified entities can participate. This move is expected to attract institutional investors, who are often hesitant to enter less regulated markets [1].

Steph Is Crypto, another analyst, has provided a technical perspective on XRP’s price action, indicating that the token is currently in a consolidation phase. He forecasts that a breakout above the support level at $2.73 could propel XRP toward the $5 mark. This prediction is supported by technical indicators showing compressed volatility, which often precedes a significant price movement [2].

CryptoWZRD has echoed similar sentiments, noting that XRP is following a historical pattern similar to its 2017 bull run. The analyst’s chart illustrates a recurring cycle of accumulation, consolidation, and breakout, with XRP potentially reaching $4.50 or higher. The current phase is viewed as a critical consolidation period, following a recent decline below $3, which is seen as necessary for building momentum for a future rally [3].

Despite the bullish outlook, analysts caution that XRP’s market behavior is similar to past bull runs that eventually led to corrections. Steph Is Crypto noted that XRP’s structure resembles a five-wave pattern observed in 2021, which concluded in a bear market. As such, investors should be prepared for potential corrections, especially as the asset approaches key resistance levels around the $4 to $5 range [2].

The broader market context also suggests that XRP’s liquidity is largely above its current price, which could lead to a short squeeze. Additionally, upcoming U.S. Federal Reserve interest rate cuts are seen as potential catalysts for upward movement, drawing parallels to a previous 500% rally following a rate cut in September 2024. However, bearish divergence signals on the RSI and declining retail interest, as seen in Google Trends data, are factors that warrant close monitoring [2].

Source: [1] The Critical XRP Ledger Upgrade That Could Fuel the Next Price Explosion (https://captainaltcoin.com/the-critical-xrp-ledger-upgrade-that-could-fuel-the-next-price-explosion/) [2] Is a Major XRP Surge on the Horizon? Analyst Claims This Chart Predicts Everything (https://intellectia.ai/news/crypto/big-xrp-breakout-coming-analyst-says-this-chart-predicts-everything) [3] Analyst to XRP Holders: XRP Bull Run Chart You Need to Remain Patient (https://timestabloid.com/analyst-to-xrp-holders-xrp-bull-run-chart-you-need-to-remain-patient/)