XRP Supply Tightens as Institutions Push for Global Liquidity in 2026
XRP is trading below $2, hovering around $1.80–$1.90 as momentum remains weak (RSI ~44, flat MACD). Exchange-listed XRP supply has fallen to roughly 1.5 billion coins after ETFs absorbed about 750 million XRP this year. Regulatory clarity from the Clarity Act is cited as a catalyst for growing institutional adoption. Market commentary highlights speculation that a future U.S. Strategic Crypto Reserve could increase demand for major crypto assets and elevate XRP’s role in global liquidity. Key takeaways for traders: tightening exchange supply and rising ETF/institutional demand may apply upward pressure on XRP over the medium to long term, while short-term price action remains rangebound and dependent on $1.80 support and $2 resistance.
Bullish
The article signals a bullish structural shift rather than an immediate price breakout. Key drivers: a measurable reduction in exchange-listed XRP (down to ~1.5B) after ETF accumulation (~750M) and improved legal clarity via the Clarity Act—both factors historically correlate with reduced float and stronger institutional demand, which can support higher prices over time. Short-term indicators (RSI ~44, flat MACD) and the $1.80–$2 range suggest limited momentum now, so traders should expect rangebound action and potential volatility around the $1.80 support. If exchange supply keeps shrinking and institutional inflows continue, upward pressure is likely to increase, similar to past cases where ETF demand reduced circulating supply (e.g., BTC ETF inflows tightening spot liquidity). Risks include macro headwinds, regulatory shifts, or a failure of expected institutional programs (like a Strategic Crypto Reserve) to materialize—any of which could negate bullish structure. Trading implications: consider position sizing for a medium/long-term accumulation thesis while using tight stop levels for short-term trades; monitor ETF flows, exchange reserves, and on-chain transfer patterns for confirmation.