Ripple recently locked over 500 million XRP in its escrow until 2028 and removed it from circulation.
This action removes about $1 billion in liquidity from the market and could lead to a price increase if demand increases.
Such data also shows that long-term investors are accumulating XRP again, indicating their confidence in a sustainable uptrend and structural support for the price.
With reduced supply and support from long-term holders, even a relative increase in demand can create a significant price reaction, reducing the risk of extreme short-term volatility.
According to market data,
XRP price has gained 4% in the last 24 hours to reach the $2.08 range. If the $2 support holds, it will pave the way for a rally to $2.10 and above.
However, if the selling pressure increases again, XRP price may fall back to $1.93 or even $1.86, invalidating the bullish scenario. Therefore, consolidation above $2 is crucial for the continuation of the bullish trend.
