Where’s XRP Price Headed As Exchange Reserves Plunge To 1.7 Billion?

XRP's price may currently be bearish, but the declining exchange-held supply suggests a potential price shift in the future. A recent 21Shares report highlights that exchange reserves have plummeted to a seven-year low of 1.7 billion XRP. The report anticipates a potential XRP repricing in 2026, influenced by regulatory clarity, ETF demand, and real-world adoption. This decrease in readily tradable supply is creating a supply shock, similar to the GameStop phenomenon. Institutional demand for XRP ETFs is emerging alongside a trend of holding by the community, compounding this effect. The strong and consistent inflows into US ETF products, despite market fluctuations, point to a shift from speculation to structural capital allocation. Using Bitcoin's spot ETF performance as a precedent, XRP's smaller market capitalization at ETF launch could lead to a more significant impact on price movements. 21Shares believes capital velocity on XRP might be higher, intensifying the price feedback loop with continued inflows. The report forecasts a 2026 scenario where regulatory access, sustained ETF inflows, and real-world asset volume on the XRP Ledger will affect valuation. The report outlines potential price peaks in 2026 ranging from $1.60 (bear case) to $2.69 (bull case).