Here’s Why A Supply Shock Could Be Imminent For XRP

Bitcoin has rebounded from extreme oversold levels, showing signs of recovery as its price stabilizes. XRP has jumped 7%, while Zcash (ZEC) has surged 14%, indicating a positive shift in the cryptocurrency market after recent declines. This rebound follows a period of significant volatility, where Bitcoin's price dipped below $90,000, impacting altcoins like XRP and ZEC.

Ethereum has seen a significant decline in its price, dropping 27.63% over the past month and currently trading around $2,800, down from a peak of $4,800. Analyst Ali Martinez suggests that on-chain metrics indicate a potential price bottom near $2,000, based on MVRV Pricing Bands that assess valuation levels.

Bitwise's XRP exchange-traded fund (ETF) launched on the New York Stock Exchange (NYSE) amid a challenging cryptocurrency market, where Bitcoin's price has dropped significantly, leading to a narrative collapse for BTC and affecting altcoins like XRP. Despite the ETF's launch, XRP has seen a decline to $1.81, its lowest since April, reflecting broader market pressures.

XRP's price has fallen below $2, with analysts indicating that it may be entering the final stages of a corrective structure, potentially dropping to $1.81 before a bullish reversal occurs. Technical analysis suggests that the current price movements align with an Elliott Wave formation, indicating further downside is likely.

Grayscale Investments has announced the launch of spot exchange-traded funds (ETFs) for Dogecoin and XRP on the NYSE Arca, set to begin trading on November 24, 2025, under the tickers GDOG and GXRP, respectively. This move allows everyday investors to access these cryptocurrencies through traditional brokerage accounts, marking a significant step in their mainstream adoption.

XRP has entered a significant growth phase with the launch of Spot XRP ETFs in the United States, generating heightened interest among institutional investors. Market commentator Chad Steingraber has projected that if ETF issuers adopt aggressive accumulation strategies similar to those seen with Bitcoin ETFs, XRP's available supply could diminish rapidly due to increased demand.

XRP has experienced a significant decline, dropping to $1.81, its lowest price since April, as Bitcoin's weakness continues to exert downward pressure on altcoins. Technical indicators suggest that XRP is oversold, but a recovery requires a break above the $1.96 level to reverse the current trend.

XRP has faced a significant sell-off, with major whale wallets offloading nearly 200 million XRP, valued at approximately $400 million, within 48 hours. This sell pressure has contributed to a 10.32% decline in XRP's price, dropping below the crucial $2 psychological level. The market sentiment remains bearish, exacerbated by the influx of sell-side liquidity from wallets holding between one million and ten million tokens.