XRP Supply Shock Looms as Exchange Reserves Hit Critical Low

As of December 2025, XRP's exchange reserves have dwindled to just 4 billion tokens, representing a mere 8% of its circulating supply. This significant reduction in available trading liquidity suggests a growing trend among investors to move their holdings into long-term storage, despite the current bearish market conditions. The accelerated withdrawal rate from centralized exchanges raises the possibility of a supply shock, particularly if demand for XRP rebounds. Market analysts are closely monitoring this development, as such a scenario could lead to substantial price volatility and potential upward momentum for XRP in the NEAR future.

XRP Exchange Reserves Dwindle Amid Market Volatility

XRP's presence on centralized exchanges has contracted sharply, with only 4 billion tokens remaining readily available for trading - just 8% of its circulating supply. This exodus from trading platforms suggests investors are moving holdings into long-term storage despite the altcoin's bearish price action.

The accelerating withdrawal rate raises prospects of a supply shock, particularly if demand resurges. Market observers note this pattern often precedes price rallies, as reduced exchange liquidity amplifies buying pressure.

Ripple Bull Winkle's data reveals the sustained outflow continues even as XRP struggles to maintain momentum. The trend mirrors behavior seen before previous bull runs, where strategic accumulation preceded breakouts.

XRP Price Prediction: Analysts Foresee Potential Breakout Amid Accumulation Pattern

XRP continues to consolidate near key support levels, mirroring its 2017 accumulation phase before a historic rally. The token's current technical structure suggests an imminent volatile move, with traders closely watching the $2.20 resistance level.

Chart patterns reveal a striking similarity to XRP's pre-bull market behavior in late 2017, when the asset surged from pennies to its all-time high within twelve months. A falling wedge formation on daily charts indicates growing compression, typically preceding significant price movements.

Market observers highlight the psychological importance of the current price zone. 'XRP is about to explode, just like it did in 2017,' noted cryptocurrency analyst Steph IS crypto, drawing parallels between the two accumulation periods. The January 2018 rally that delivered quadruple-digit returns remains fresh in traders' memories.

XRP ETFs See Unprecedented 19-Day Inflow Streak as Institutional Interest Surges

Wall Street's appetite for XRP shows no signs of abating. US-listed spot XRP ETFs have recorded 19 consecutive trading days of net inflows, amassing $974.50 million in fresh capital by December 12. Total assets under management now stand at approximately $1.18 billion, signaling robust institutional demand rather than retail speculation.

The inflows came in waves—$243.05 million on November 14, $164.04 million on November 24, and $118.15 million on November 20. Even as the pace moderated, December still saw consistent additions, including $38.04 million on December 8 and $20.17 million on December 12.

Market observers note the significance of this sustained institutional positioning. XRP ETPs now edge out solana in total assets under management, with Bloomberg Intelligence data showing $1.638 billion in XRP products compared to Solana's $1 billion.

SEC Drops Nearly 60% of Crypto Cases Under Trump Administration

The U.S. Securities and Exchange Commission has significantly reduced its enforcement actions against the cryptocurrency industry since President Donald TRUMP returned to office. Nearly 60% of crypto-related cases have been dismissed or paused, according to a report by The New York Times.

Major cases affected include those against Ripple Labs and Binance, with the SEC no longer actively pursuing any cases against firms with known ties to Trump. The agency denies political motivations, attributing the shift to legal and policy considerations.

Enforcement activity in traditional markets continues unabated, but crypto firms have seen a disproportionate number of case withdrawals. The report found no evidence of direct pressure from Trump on the SEC to drop investigations.