Financial Analyst: This May Happen to XRP in the Next 30 to 60 Days

Market uncertainty often triggers fear, especially when prices drop suddenly. XRP has not escaped this pressure, and many holders are wondering what comes next. Sharp dips can feel alarming, yet history shows that deep pullbacks often precede major moves. This moment demands calm analysis rather than emotional reactions.

In a recent X post, Common Sense Crypto (@TheCSCrypto) warned that XRP may enter a scarcity phase soon. He noted that many traders remain worried about the current decline. However, he stressed that the panic could fade quickly if supply tightens in the coming weeks. His message adds urgency to the ongoing discussion about XRP’s shifting liquidity conditions.

Current Market Conditions

XRP’s recent decline has attracted strong attention from analysts. Market volatility remains elevated across major assets. XRP has also seen increased movement between exchanges and private wallets. These transfers reflect active repositioning, especially among large holders. When significant volumes move off exchanges, available trading supply shrinks.

Exchange liquidity plays a critical role in determining short-term market behavior. XRP balances on some platforms have dropped over recent weeks. Lower balances reduce the amount of XRP available for active trading. When demand rises during such periods, price reactions tend to grow stronger. Analysts are watching these trends closely.

Potential Supply Squeeze

A possible supply squeeze remains the core topic of the current debate. If institutional demand increases while exchange balances continue to fall, scarcity may emerge. Scarcity can accelerate price discovery because buyers must compete for fewer tokens.

This scenario aligns with the timeline mentioned by Common Sense Crypto. He expects potential tightening over the next 30 to 60 days.

Institutional interest in XRP has grown across several channels. Custodial services have reported increased activity tied to professional investors. Some institutions prefer private storage rather than exchange wallets. That preference removes tradable XRP from the open market. Increased custody demand often sets the stage for upward price pressure.

Risks and Market Realities

Despite growing optimism, risks remain present. Market sentiment can shift quickly after macro or regulatory events. Large holders could still reshuffle positions and add fresh selling pressure. Traders must consider these risks before forming strong conclusions. No outcome is guaranteed, even when indicators look promising.

Outlook for the Next 60 Days

The next two months may prove decisive for XRP. Analysts expect continued volatility across the broader market. However, a sustained drop in exchange balances may increase the probability of a supply squeeze. If scarcity emerges, the current dip may become a forgotten event. Many holders believe this possibility supports a long-term perspective.

XRP faces a complex but potentially favorable setup. Current weakness may mask deeper structural shifts in liquidity. Common Sense Crypto highlights a possible scarcity window that could change market dynamics soon.

Traders should stay focused on verified data rather than short-term fear. Decisions grounded in research will remain the most valuable guide in uncertain times.