500 Million XRP Removed From Supply Until 2028 – How Will This Affect Price?

Core Insights - XRP price has recovered significantly, surpassing the $2 mark, driven by improved market sentiment and increased investor interest following a period of consolidation [1] - The ability of XRP to reclaim the $2 level has allowed it to briefly surpass BNB in market capitalization rankings, indicating a resurgence in demand [1] Market Dynamics - Over 500 million XRP have been transferred into an escrow mechanism, effectively removing over $1 billion worth of XRP from circulation until 2028, which alters market conditions by limiting liquidity [3] - The escrow-based supply locks are expected to have a stronger price impact when demand remains stable, benefiting from ongoing institutional and enterprise interest [4] Investor Behavior - Recent accumulation of XRP marks a reversal from a month of selling pressure, with long-term holders showing renewed confidence in XRP's potential for sustained upside rather than a short-term spike [5] - Increased activity from older wallets provides structural support during price rallies, as these holders tend to sell less aggressively during pullbacks, reducing downside volatility [5][6] Price Analysis - XRP price has increased by 6.7% in the last 24 hours, trading near $2.00, which is a psychological milestone that requires confirmation to sustain bullish momentum [7] - Immediate resistance is identified at $2.03, and a decisive move above this level, followed by consolidation, would confirm a bullish continuation pattern [7]