One analyst has sounded the alarm about what could be one of the biggest explosive rally in XRP history. As the cryptocurrency prepares for its highly anticipated debut on the Exchange-Traded Fund (ETF), XRP’s balance on major exchanges will continues to decline. Analysts warn that a looming supply crunch could cause a significant increase in the XRP price, which is currently more than 34% below all-time highs.
Shortage of XRP supply leads to parabolic wave
Amid continued market volatility and capitulation of whalesCrypto market expert Arthur remains bullish on XRP, drawing attention to a series of developments in the chain that could mark the start of a parabolic upward move. In his social media post X, the analyst says emphasized that an XRP will soon be a supply crisiswhich could cause the next price explosion.
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According to recent chart data from CryptoQuant, XRP reserves on Binance have fallen to approximately 2.79 million tokens, marking a continued decline that began in early 2025. The chart also shows that while the price of XRP has remained relatively stable between $2 and $3, the available supply on almost all major cryptocurrency exchanges has continued to drop dramatically. Arthur revealed that this indicates a growing imbalance between supply and demand, which could lay the foundation for a bullish move.
Arthur also points to a prediction from JPMorgan analysts, who estimate that between $4 billion and $8 billion could flow into the upcoming XRP Spot ETFs once they hit the market. This projection indicates confidence in The Future Institutional Demand of XRP and interest as a legitimate digital asset class. The analyst has suggested that increased demand for institutional ETFs, combined with limited liquidity, could create a “perfect storm” for an XRP price breakout.
Furthermore, the analyst revealed that the XRP ETF could also see a surge in retail demand, which would contribute to the expected price increase. This is currently evident from reports approval of XRP Spot ETFs by the US Securities and Exchange Commission (SEC) is still pending. However, leading analysts like Nate Geraci remain confident that these investment products will be launching soon.
Binance XRP Reserve data shows steady losses
We delve into the supply of XRP on exchanges and the data from CryptoQuant shows that the reserve of the cryptocurrency on Binance as of November 12, 2025 is approximately 2.785 billion tokens. Notably, this marks a drop of over 10 million tokens from the day before, when 2.795 billion XRP was registered. Since early November, Binance’s XRP balance has fallen and hovers just above the 2.7 billion token mark.
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Earlier in October, reserves fell to 2.74 billion tokens, one of the lowest levels in almost a year. While balance sheets briefly recovered in mid-October, the latest data shows a renewed downward trajectory, suggesting that selling pressure may have subsided and accumulation could take place outside of stock markets.
Featured image from iStock, chart from Tradingview.com