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XRP’s Bullish Trajectory: Analyzing the Path to $3.20 Amid Supply Squeeze

XRP’s Bullish Trajectory: Analyzing the Path to $3.20 Amid Supply Squeeze

Author:
XRP News
Published:
2025-10-16 12:04:27
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XRP has demonstrated remarkable strength in recent trading sessions, decisively breaking through the $2.50 resistance level as of October 16, 2025. This significant price movement is primarily driven by a substantial reduction in exchange reserves, particularly on major platforms like Binance, where holdings have retreated to early September levels. The withdrawal of nearly 100 million tokens since October 10 signals a classic supply squeeze scenario, where decreasing available supply on exchanges typically precedes substantial price appreciation as demand remains constant or increases. The current market dynamics suggest that XRP is entering a crucial phase in its price discovery journey. The next major resistance level sits at $3.20, which represents both a psychological barrier and a technical milestone that could determine the cryptocurrency's medium-term trajectory. Market analysts are closely monitoring whether ETF-related catalysts will provide the necessary momentum to breach this level, potentially triggering another significant upward leg in XRP's valuation. This supply-driven rally underscores the importance of on-chain metrics in understanding cryptocurrency price movements. The reduction in exchange reserves indicates that investors are moving their XRP holdings to private wallets for long-term storage, reflecting strong conviction in the asset's future prospects. This behavior typically reduces selling pressure while maintaining or increasing buying demand, creating favorable conditions for continued price appreciation. As the market watches these developments unfold, the combination of technical factors, fundamental demand drivers, and potential regulatory catalysts through ETF developments creates a compelling narrative for XRP's continued growth. The current price action suggests that the cryptocurrency is well-positioned to test higher resistance levels, though market participants should remain vigilant for any shifts in the underlying supply-demand dynamics that could influence future price movements.

XRP Surges Past $2.50 as On-Chain Demand Fuels Rally

XRP's price has breached the $2.50 mark, propelled by a combination of shrinking exchange reserves and renewed bullish momentum. Binance's XRP holdings have dropped to early September levels, with nearly 100 million tokens withdrawn since October 10—a classic precursor to a supply squeeze.

The cryptocurrency now faces its next critical test at $3.20, a level that could determine whether ETF-related catalysts trigger another leg up. Futures Open Interest has shed $5 billion since late July, when XRP last approached $3.50, suggesting Leveraged positions are being cleared for a healthier advance.

Market observers note the 1-hour chart shows a textbook rebound from the $1.25 crash low, with on-chain metrics now confirming the strength of the recovery. The question remains whether this setup mirrors the 19% weekly bounce seen in late July when similar conditions prevailed.

XRP Futures ETFs Lack Real Demand Impact, Analyst Says

Crypto analyst Jake Claver asserts that XRP futures ETFs fail to generate tangible price support for the token. These derivatives products trade cash-settled contracts rather than holding physical XRP, creating no supply pressure or institutional buying demand.

Spot ETFs WOULD fundamentally differ by requiring custodial holdings of actual tokens. Approval of such vehicles could remove XRP from circulation and potentially drive prices higher through institutional participation.

The current futures structure merely satisfies regulatory requirements without affecting market dynamics. "This is paper trading dressed up in an ETF wrapper," Claver observes, noting the mechanism's detachment from the underlying asset's supply-demand equilibrium.

XRP Price Prediction: SEC Filings Hint at Imminent ETF Launch

The cryptocurrency market is abuzz as updated S-1 amendments signal final preparations for spot XRP ETFs. ETF Institute co-founder Nate Geraci notes the inclusion of official tickers in filings as a clear indicator of impending approval. Bloomberg's Eric Balchunas echoes this sentiment, stating the odds are "really 100% now" following the SEC's adoption of generic listing standards.

This regulatory shift eliminates the need for 19b-4 filings, streamlining the approval process. XRP's qualification as an eligible asset positions it for rapid integration into U.S. traditional finance markets. Market observers anticipate this development could catalyze significant price movement for the digital asset.

The convergence of regulatory clarity and institutional infrastructure marks a pivotal moment for XRP. As the final procedural hurdles clear, traders await the potential impact of regulated spot exposure on XRP's valuation.

XRP Stages Powerful Comeback After Massive Crash — Is a Bullish Reversal Underway?

XRP has stunned the crypto market with one of its most dramatic recoveries in recent months, defying expectations of a prolonged downturn. The token plummeted nearly 60% in a single day last week, only to rebound sharply to around $2.55 from a flash low below $2.00. This resurgence has reignited trader optimism and highlighted the asset's underlying strength.

Analysts speculate the initial crash may have been a liquidity flush—a strategic shakeout to clear excessive leverage. The 200-day EMA now serves as a critical technical level. Holding above this threshold could pave the way for a retest of the $2.90–$3.00 resistance zone, potentially confirming a medium-term bullish reversal. This range coincides with the upper trendline of XRP's descending wedge pattern, a formation often preceding significant breakouts.

Trading volume has surged alongside the price recovery, suggesting growing momentum. However, the RSI indicates continued volatility as it emerges from oversold territory. For this rally to sustain, XRP must maintain daily closes above $2.00 with consistent volume—key indicators distinguishing a genuine recovery from a short-covering bounce.

Market sentiment has shifted markedly from despair to cautious optimism. Traders now watch closely to determine if this marks the beginning of a sustained upward trajectory for the embattled token.

XRP Price Faces Resistance at $2.65 as Recovery Momentum Wanes

XRP's price recovery has hit a significant barrier NEAR the $2.65 level, despite climbing above key support zones. The cryptocurrency, now trading above $2.52 and its 100-hour moving average, faces a critical test of bullish conviction.

A bearish trend line forming at $2.65 on the XRP/USD hourly chart presents formidable resistance. This level coincides with the 76.4% Fibonacci retracement of the asset's recent decline from $3.05 to $1.40. Market participants await a decisive breakout above this threshold to confirm continuation of the uptrend.

The recovery wave, which began from $2.20 support, mirrors broader market movements seen in Bitcoin and Ethereum. However, failure to sustain above $2.50 could trigger renewed selling pressure, potentially invalidating the current bullish structure.

XRP's Trajectory: Assessing Ripple's Future in Global Payments

XRP has surged roughly 390% over the past year, outpacing many peers in a crypto market buoyed by regulatory tailwinds. The token now faces a critical juncture—can it leverage its unique consensus mechanism to dominate cross-border payments?

Unlike Bitcoin's proof-of-work or Ethereum's proof-of-stake, Ripple's network relies on a unique nodes list for validation. This architecture positions XRP as a potential disruptor in institutional payment corridors, though questions remain about scalability under mass adoption.

The coming years will test whether XRP can transition from a speculative asset to infrastructure bedrock. Market sentiment suggests bifurcated expectations—either a breakout toward mainstream financial utility or a retreat to niche status.

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