This week, crypto connoisseurs are bracing for a big impact as NASDAQ officially drops the XRP ETF listing notice.
With major crypto exchanges notably dropping their XRP reserves in the recent weeks, market analysts are spotting signs of an XRP price squeeze. With the first Canary ETF going live today on the traditional stock markets with the ticker XRPC, some market connoisseurs forecast a humongous liquidity influx.
Drastic XRP Price Targets Require Drastic Measures
With HBAR & SOL ETFs trading in tens of millions, XRP is potentially poised for more than that. That’s if the squeeze theory plays out – 4 billion XRP tokens would have to be purchased on the ETF opening days, accounting for 4% of Ripple coin’s (XRP) total supply, with 100B coins ever coded into existence.
According to FeFe, a popular analyst on the Crypto Twitter community with 12.2K followers, double-digit price targets like $47 are plausible if the XRP ETF nails $10 billion inflows in the first week. While this might sound wildly optimistic, Canary Capital’s CEO recently disclosed that XRP’s trading volumes would typically edge Solana (SOL) due to high institutional demand.
With XRP’s wholesale holdings on exchanges now tumbling below 5 billion coins & big names like Coinbase dropping roughly 90% of their XRP reserves since last Summer have solidified the bullish squeeze theory. Shortly put, a digital asset skyrockets in value when institutional investors rush in to buy it along with a sharp drop on major crypto exchanges, inducing scarcity.
If the institutional inflows came slower than expected, this could have an opposite effect on XRP’s short-term price. If the inflows trickle on the institutional side, retail investors might not get the lift needed for them to buy-in. The broader market context suggests fear is still dominating against greed. The Fear & Greed Index is now flashing 15, hinting at the market soaking in fear.
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