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- Coinbase XRP reserves fell 90% in three months.
- Institutional treasuries and ETFs boost demand.
- Technical analysis targets $4.39–$5.85 upside.
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Ripple’s native cryptocurrency, XRP, is showing signs of a major supply squeeze, fueling anticipation of a strong price rally in the coming months. Recent on-chain data reveals a dramatic reduction in XRP reserves on Coinbase, highlighting growing institutional interest and mounting demand for the digital asset.
Coinbase XRP Reserves Plunge
According to XRPWallets data, Coinbase’s XRP cold wallet holdings have plummeted nearly 90% in just three months. The exchange’s reserves fell from approximately 970 million tokens spread across 52 wallets in early June 2025 to only 99 million XRP across 6 wallets by mid-September. This consolidation indicates a major reshuffling of Coinbase’s XRP management and suggests a tightening supply in the market.
Institutional Demand Fuels the Rally
Beyond exchange activity, XRP’s scarcity is being intensified by corporate treasury strategies. Eight companies, including Trident Digital Tech Holdings, VivoPower International, and Wedbush International, now hold over $100 million each in XRP. Additionally, a wave of 11 spot XRP ETF applications from major asset managers like Grayscale, Fidelity, VanEck, and ARK Invest is awaiting SEC approval. The launch of the Rex-Osprey XRP ETF under the ’40 Act structure this week could further boost institutional demand, squeezing supply even more.
Also Read: $3.60 Breakout? XRP Beats Corporate Giants Market Value in Rally
Technical Signals Point Higher
Analysts are optimistic on the technical front as well. Popular crypto analyst Dark Defender, using Elliott Wave analysis, notes that XRP has broken through initial weekly resistance, pointing to potential upside levels at $4.39 and $5.85. On the downside, support levels remain near $3.01 and $2.85. Meanwhile, XRP’s daily trading volume has surged 12.47% to $5.7 billion, and open interest stands strong at $8.57 billion, signaling robust market activity.
With Coinbase reserves dwindling, institutional demand rising, and strong technical signals in play, XRP appears poised for a significant rally. If momentum holds, the $5 mark could be within reach, reflecting a broader trend of growing adoption and utility in cross-border payments, DeFi, and real-world asset settlements.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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