Ripple Removes 500 Million XRP From Supply: Will Price React?

XRP price has mounted a notable recovery, climbing above the $2 level amid strengthening momentum across the broader crypto market. Improved risk sentiment has supported the move; however, XRP’s rise is not solely driven by market conditions.

The altcoin’s ability to reclaim $2 has also allowed XRP to briefly flip BNB in market capitalization rankings. This development marks a resurgence in investor interest following weeks of consolidation.

Still, maintaining this position depends on continued structural support rather than short-lived speculative flows.

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XRP Holders Show Strength

On-chain data highlighted that over 500 million XRP were recently transferred into an escrow mechanism designed to lock supply until 2028. This action removes more than $1 billion worth of XRP from circulation. Such supply reduction alters market conditions by limiting available liquidity during periods of rising demand.

Escrow-based supply locks tend to have a stronger price impact when demand remains stable. XRP benefits from persistent institutional and enterprise-focused interest.

With fewer tokens available for trading, even modest increases in demand can lead to outsized price reactions, creating conditions for a potential supply shock.

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Macro momentum indicators further strengthen the bullish narrative. The HODLer net position change metric shows long-term holders shifting back into accumulation. Over the past week, wallets classified as LTHs have consistently increased their XRP balances.

This accumulation marks a clear reversal from nearly a month of steady selling pressure. Long-term holders typically reduce exposure during uncertainty and re-enter when confidence returns. Their renewed buying suggests belief in XRP’s sustained upside rather than a short-term price spike.

Older wallet activity often provides structural support during rallies. These holders tend to sell less aggressively during pullbacks, reducing downside volatility.

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As LTH accumulation increases, price stability improves, allowing XRP to build higher support levels with reduced risk of sharp corrections.

XRP Price Reaches Critical Level

XRP price is up 6.7% over the last 24 hours, trading near $2.00 at the time of writing. While reclaiming this level is a psychological milestone, confirmation remains essential. XRP must secure $2.00 as support to sustain bullish momentum and avoid a false breakout.

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Immediate resistance stands at $2.03. A decisive move above this level, followed by consolidation, would confirm a bullish continuation pattern.

If achieved, XRP could extend gains toward $2.10, where additional liquidity and historical resistance reside.

However, downside risks remain present. Short-term holders who have waited nearly three weeks for favorable exit conditions may begin profit-taking.

If selling pressure intensifies, XRP could slip back to $1.93. Losing this support would expose the price to $1.86, invalidating the bullish thesis and restoring a neutral-to-bearish outlook.