Analyst Predicts XRP Price Could Reach $200 Due to Upcoming Supply Shock: Here's the Explanation
Rising Institutional Demand: The XRP market is experiencing increased institutional demand alongside a shrinking liquid supply, which could lead to a significant supply shock.
Impact of ETFs: The anticipated launch of 12 spot XRP ETFs could create substantial buying pressure, requiring daily acquisitions of 132 million XRP, thereby draining liquidity from exchanges.
Liquidity Concerns: With only 3 to 3.5 billion XRP currently liquid on exchanges, the aggressive ETF buying could lead to explosive price movements as buyers compete for limited available XRP.
Price Predictions: If the current trends continue, XRP prices could potentially surge to $200, driven by real-time supply and demand dynamics rather than speculation, although some purchases may occur off-exchange.
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