XRP is grabbing attention in the cryptocurrency market as recent on-chain data reveals a staggering 90% decrease in XRP reserves held by Coinbase. This significant decline indicates that large investors, often referred to as whales, are shifting their holdings off exchanges, pointing to a potential supply squeeze. The anticipation surrounding this shift is compounded by positive macroeconomic indicators and Ripple Labs’ new partnerships, leading many traders to speculate that XRP could rise towards the coveted $10 mark if the current momentum persists.
As of the latest data, XRP was trading at approximately $3.12, reflecting a 3.36% increase over the past 24 hours. Analysts suggest that a substantial drop in exchange reserves is historically linked to major price surges. With fewer tokens available on exchanges, upward price pressure often builds, and the current environment is no exception. The Federal Reserve’s recent rate cut has also contributed to renewed optimism throughout the cryptocurrency sector, further boosting investor confidence in XRP.
The decline in Coinbase’s XRP reserves has been striking, falling from 970 million to just 199.47 million in the past three months. This dramatic reduction points toward institutional players and whale investors distancing themselves from exchanges, likely for long-term holding rather than trading. Such a drastic decrease can lead to what analysts term a “supply shock,” which in past instances has resulted in significant price increases when demand surges.
Historical data endorses this hypothesis, with previous whale accumulation cycles indicating a strong correlation between reduced supply and price rallies. For instance, in August 2025, it was reported that whales amassed $3.8 billion worth of XRP, which contributed to the price nearing its all-time high of $3.66 in July. Similar conditions appear to be forming now, with analysts projecting a possible surge towards the $10 mark should bullish sentiment continue.
Beyond technical indicators, Ripple’s recent partnerships are enhancing the utility of XRP, strengthening its position in the market. The company has teamed up with DBS Bank and Franklin Templeton to introduce tokenized money market funds backed by its RLUSD stablecoin. This strategic move is expected to elevate XRP’s utility within institutional finance, fostering real-world adoption and enhancing the fundamentals that support its price performance.
Ripple CEO Brad Garlinghouse has emphasized the unique capabilities of XRP to address significant global payment challenges, labeling it a “multi-trillion-dollar opportunity.” This aligns seamlessly with Ripple’s ongoing efforts to expand its ecosystem and establish practical use cases for XRP, transitioning it from a speculative asset to a viable solution in the financial landscape.
Looking ahead, the convergence of supply constraints from whale accumulation, the steady growth of Ripple’s ecosystem, and the improved liquidity conditions stemming from the Federal Reserve’s policies suggest that XRP could be on the brink of a significant upward movement. Traders are particularly focused on breaking through a key resistance level above $3.66, which could pave the way for further gains, possibly approaching the anticipated $10 price point.
After breaking out of a 57-day descending trendline, XRP is finding support around the $2.90 to $3.00 range with targets set at $3.35, $3.68, and possibly reaching as high as $4.02. While volatility remains a constant in cryptocurrency markets, the interplay of favorable technical indicators, macroeconomic support, and surging institutional interest paints a cautiously optimistic picture. For long-term investors, the narrative of XRP potentially reaching $5 to $10 by 2025 becomes increasingly plausible.
