XRP News Today: XRP's Real Rally Hinges on Supply Shock Amid Global Liquidity Crisis

Jake Claver, CEO of Digital Ascension Group and a financial expert, has suggested that the real XRP rally will not be driven by the resolution of Ripple’s long-standing legal case with the U.S. Securities and Exchange Commission (SEC), but rather by a supply shock during a global liquidity crisis [1]. Claver emphasized that much of the current price activity in XRP is speculative, largely due to institutional positioning ahead of potential spot ETF products [1].

A supply shock occurs when the amount of XRP available for trading in the open market drops sharply—this can happen through large holders moving tokens into cold storage, institutional accumulation, or a slowdown in XRP’s distribution schedule. When supply tightens, buyers have fewer options, and even modest purchasing activity can significantly influence prices [1]. In such a scenario, the reduced liquidity can lead to tighter order books, wider spreads, and increased slippage, all of which can accelerate upward price movements [1].

Claver also linked this potential supply shock to the possibility of a global liquidity crisis, a situation where capital and credit availability in financial markets sharply declines. Under these conditions, XRP may experience heightened demand at a time when its circulating supply is constrained, creating an environment where even small inflows of capital can drive substantial price increases [1].

Market sentiment alone has not yet translated into a sustained rally. While XRP rose slightly following the dismissal of the SEC case, it has failed to reclaim its previous all-time high of $3.65, suggesting that legal clarity, while important, may not be the key catalyst for a major price breakthrough [1]. Instead, Claver argues that structural market conditions—particularly those involving supply and liquidity—will play a more decisive role in determining XRP’s trajectory [1].

Some analysts have also offered bullish forecasts for XRP, with one predicting a price range of $7 to $10 during a potential fifth-wave rally, contingent on broader market conditions [2]. Another market observer noted that if Ripple reveals a large number of its 1,700 banking agreements following the resolution of its SEC case, XRP could trade between $5 and $8 within the next three months [3]. However, these projections remain speculative and are contingent on macroeconomic and institutional developments [2][3].

On the other hand, not all analysts are optimistic. One report suggests that even under favorable conditions, XRP may not generate the returns required to turn investments into $1 million within the next five years [4]. The token has shown signs of instability, hovering around the $3 mark and even prompting uncertainty among long-term holders [5]. A recent 25% rally pushed XRP back to $3.05, but analysts caution that this movement does not confirm a sustained upward trend [6].

Looking ahead, if XRP manages to hold above $3.65, it could potentially challenge previous all-time highs, with a target near $4.60 [7]. However, the token must first overcome key resistance levels and maintain a strong on-chain narrative to confirm a lasting bullish trend [7].

The XRP market remains a complex mix of optimism and skepticism, with analysts closely monitoring developments around Ripple’s legal status, institutional adoption, and broader macroeconomic conditions. As the token approaches critical price levels, the market’s reaction will likely determine whether the current rally is a precursor to a larger move or simply a temporary reprieve in an otherwise uncertain landscape [1][3][7].

Source:

[1] Finance Expert Reveals When Real XRP Rally Will Start (https://timestabloid.com/finance-expert-reveals-when-real-xrp-rally-will-start/)

[2] XRP Bullish Outlook: Analyst Targets $7 to $10 for Wave 5 (https://coincentral.com/xrp-bullish-outlook-analyst-targets-7-to-10-for-wave-5-peak/)

[3] Here's Where XRP Price Could Go if Ripple Reveals All 1700 Banking Agreements as SEC Case Ends (https://thecryptobasic.com/2025/08/08/heres-where-xrp-price-could-go-if-ripple-reveals-all-1700-banking-agreements-as-sec-case-ends/)

[4] Here's What It Would Take to Make $1 Million With XRP (https://www.mitrade.com/insights/news/live-news/article-8-1026169-20250809)

[5] XRP Price Teeters at $3 as Even Diamond Hands Start to Fold (http://www.msn.com/en-us/money/markets/xrp-price-teeters-at-3-as-even-diamond-hands-start-to-fold/ar-AA1K2qdw?apiversion=v2&batchservertelemetry=1&domshim=1&noservercache=1&noservertelemetry=1&renderwebcomponents=1&wcseo=1)

[6] Ripple's XRP Silences Doubters With Explosive 25% Rally (https://m.fastbull.com/en/news-detail/ripples-xrp-silences-doubters-with-explosive-25-rally-news_6100_0_2025_3_6883_3)

[7] XRP Stalls, But Holds The Line At $3.30 After Explosive Rally (https://www.mitrade.com/au/insights/news/live-news/article-3-1026652-20250810)