XRP is nearing the $1.50 threshold as a supply squeeze intensifies, driven by U.S. spot exchange-traded funds locking up a record 1.34% of the token’s circulating supply.
According to data from SoSoValue, cumulative net inflows into U.S. XRP ETFs have reached $1.37 billion since their launch, with total assets under management standing at $1.25 billion. These regulated funds have seen consistent demand, pulling in $18.52 million in a single 24-hour period as institutional confidence grows.
The aggressive institutional buying is compounded by long-term holders. On-chain analysis reveals that wallets holding 10 million XRP or more have increased their positions to an 8-year accumulation high of 45.83 billion tokens, controlling 68.5% of the total circulating supply. This combination of ETF demand and whale accumulation has sharply reduced the freely available XRP on exchanges.
This dynamic creates a volatile setup where even small increases in demand could have an outsized price impact, with analysts watching the $1.55 local high as the next key level. A confirmed breakout could validate an exit from a prolonged correction, putting mid-term targets of $2.038 and a macro target of $3.50 into play. The primary catalyst for the institutional interest is the CLARITY Act, a bill that codifies XRP as a digital commodity, which recently cleared the Senate Banking Committee. The bill's progress provides the regulatory certainty institutional investors have been waiting for, as evidenced by the steady ETF inflows. While the price has recently pulled back to around $1.44, the lower Bollinger Band at $0.79507 continues to act as solid technical support.
This article is for informational purposes only and does not constitute investment advice.
