XRP Could Reach $20 on Supply Shock, ETF Demand, Rate Cuts
Market strategist Levi forecasts that XRP could climb to $20, citing parallels with the 2017 supply shock surge. He noted that XRP reserves on exchanges have fallen by 5.66%, tightening liquidity and increasing price pressure. Levi also highlighted the potential for major inflows from spot ETFs, which he sees as 95% likely to participate. Another structural demand factor is Ripple’s On-Demand Liquidity (ODL) service, which has processed $1.3 trillion.
In the short term, some analysts expect XRP to test $6. But Levi’s midterm outlook is more bullish. He argues that further exchange reserve withdrawals, ETF accumulation, and prospective interest rate cuts will boost risk assets. Looser monetary policy could restore liquidity and drive institutional and retail demand.
By integrating historical data, present supply dynamics, and macroeconomic trends, Levi builds a data-driven case for a significant XRP price rally. His XRP price prediction underscores the impact of supply contraction and growing institutional adoption.
Bullish
Levi’s forecast is bullish. Reduced XRP reserves on exchanges historically coincide with upward price movements, as seen in 2017. The 5.66% reserve drop is a clear signal of supply tightening. Combined with potential spot ETF inflows, which could lock up large XRP volumes, this sets the stage for upward price pressure. Moreover, looser monetary policy through interest rate cuts tends to boost risk assets, including cryptocurrencies. In the short term, traders may witness a test of $6, but sustained supply contraction and institutional participation could drive a prolonged rally toward $20. Similar dynamics played out when Bitcoin ETFs launched, fueling extended uptrends. Overall, these factors collectively support a bullish outlook for XRP in both the medium and long term.