XRP’s Scarcity Advantage Gains Spotlight Amid Market Volatility

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  XRP’s capped supply strengthens investor confidence amid ongoing market volatility.
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  Massive 70 million XRP transfer fuels speculation about Ripple’s future plans.
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  Analysts monitor resistance zones as XRP tests crucial price support levels.

According to updates shared by Coinbase and market analysts, discussions surrounding XRP’s capped supply have intensified. Pro-Ripple lawyer Bill Morgan highlighted how the token’s fixed 100 billion limit provides holders with a scarcity edge compared to assets without a hard cap.

He explained that this design protects XRP holders from dilution, contrasting it with Ethereum’s unlimited issuance structure.

Rajat Soni, CFA, supported this view, stressing that tokens with unrestricted supply often face long-term devaluation. Consequently, the focus on XRP’s supply model has renewed investor confidence, emphasizing scarcity as a defining strength for sustainable value.

XRP Price Levels and Investor Sentiment

At present, XRP trades around $2.52 following a 12.54% decline over the past week. Its market capitalization stands at $151.06 billion, with a fully diluted valuation of $252.22 billion. Daily trading volume dipped 12.72% to $8.52 billion, representing a 5.65% ratio of volume to market cap.

Currently, 59.91 billion XRP are in circulation out of the total 99.98 billion supply. Despite price swings, more than 480,000 investors continue to hold the token, indicating strong participation within the network. Analysts believe the near-maximum supply level reinforces market confidence in XRP’s long-term appeal.

Moreover, XRP remains one of the most widely distributed assets in the crypto industry. Its scarcity has become a central factor distinguishing it from inflationary tokens that rely on continuous issuance for network operations.

Large-Scale XRP Transfer Sparks Market Reactions

According to XRPwallets, 70 million XRP, valued at $173.6 million, recently moved into a Ripple-controlled subwallet. The movement is believed to be part of Ripple’s routing system connected to its On-Demand Liquidity operations. The transaction occurred while XRP traded close to $2.52 after briefly falling below $2 earlier this week.

The scale of the transfer drew attention as the value represented more than 2% of XRP’s daily global turnover. Analysts suggested that if even a fraction of these tokens reached open markets, it could weigh on prices.

Some observers viewed the activity as a signal of potential expansion in Ripple’s ODL network, possibly tied to its RLUSD initiative with institutional partners. However, others warned that such large wallet movements might keep market sentiment cautious, particularly as ETF-related decisions approach later this month.

Analysts Eye Key Resistance Zones

Market analysts mapped XRP’s near-term range between $2.40 and $2.60, identifying $2.14 as a vital support level. A sustained move above $2.65 could signal renewed momentum, while higher resistance levels at $3.31 and $8.29 define the broader upward targets.

According to EGRAG CRYPTO, the next two months could determine whether XRP recovers its bullish trend. Charting Guy noted that the monthly chart remains structurally strong, with prices holding above the $1.61 Fibonacci level. Maintaining monthly closes above this mark is seen as a foundation for a sustained long-term rally.

Outlook

XRP’s capped supply continues to influence sentiment amid shifting market conditions. The emphasis on scarcity and disciplined circulation strengthens its case among investors seeking stability within volatile markets.