Market watchers point to a dramatic decline in reserves at Coinbase, one of the largest U.S. trading platforms, where visible holdings have been nearly wiped out in just three months.

On-chain trackers show that the exchange once managed close to a billion XRP across dozens of cold wallets earlier this summer. By mid-September, that figure had dwindled to under 100 million tokens, now stored in only a handful of addresses. The consolidation of wallets hints at a structural shift in custody practices, but analysts argue the bigger story is the sheer speed of depletion.

Treasury Holdings and ETF Push Fuel Momentum

The tightening supply comes as corporations begin treating XRP as a strategic reserve. At least eight companies have disclosed treasury allocations, with firms such as Trident Digital Tech Holdings, VivoPower International, and Wedbush International each reportedly holding more than $100 million worth of the asset. Supporters say this type of adoption reflects a growing perception of XRP as a tool for settlement and balance sheet diversification.

At the same time, the ETF race is adding fuel to speculation. Eleven separate applications for U.S.-listed spot XRP funds are waiting for regulators to give the green light, with submissions from heavyweights like Fidelity, Grayscale, VanEck, Franklin Templeton, ARK Invest, and Bitwise. One product, the Rex-Osprey XRP ETF, is already preparing to launch under the ’40 Act framework, a move expected to pull in new categories of investors.

Broader Utility Expands Use Cases

Outside of financial products, XRP’s role is widening across global payments and tokenized finance. Banks are experimenting with its settlement speed in cross-border transfers, while projects are exploring its use in stablecoin transactions, interbank clearing, and even decentralized finance protocols. Analysts believe this combination of shrinking supply, institutional uptake, and growing utility could set the stage for a stronger price cycle.

Technical Outlook: Is $5 Within Reach?

Despite wider market swings, XRP has managed to hold a key psychological level around $3. Daily trading volumes recently spiked above $5.7 billion, and open interest across derivatives platforms sits at more than $8.5 billion.

Well-followed chartist Dark Defender argues that XRP has started breaking through weekly resistance levels. Using Elliott Wave and Fibonacci models, he identifies $4.39 and $5.85 as potential milestones in the coming months, while cautioning that pullbacks to the $2.85–$3.01 region remain possible.

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Filed under: Bitcoin - @ September 16, 2025 2:35 pm