While the excitement of an uptrend is driving many XRP investors towards potential profit-making, there’s an important warning: extreme price volatility could leave some unable to sell. This phenomenon, known as liquidity crunch, arises from thin market supply and demand when large volumes of sellers rush to cash out simultaneously. The article details how this can impact even seasoned traders, leading to significantly lower sell prices. It focuses on the unique characteristics of the XRP ecosystem where institutional players like banks and hedge funds engage in OTC transactions, potentially leaving a smaller pool of XRP for retail investors during market surges. While this is great news for real-world payment applications and Ripple’s global payments infrastructure, it also leads to decreased public trading liquidity at times of high volatility. This creates an important dilemma: will retail traders be able to capitalize on the potential gains or face a challenging sell-off scenario? The article offers solutions like using limit orders and setting sell targets before market surges, to enable a more successful exit strategy in volatile markets.