The cryptocurrency market is known for its volatility, but liquidity plays a crucial role in shaping these fluctuations. While it might appear deep at first glance, the truth is often far different. Take the XRP market as an example: recent analysis by crypto analyst Vincent Van Code has highlighted a worrying lack of liquidity on Binance’s exchange order book. This scarcity has created difficulties for large buyers seeking to accumulate significant amounts of XRP without triggering dramatic price shifts. 4 million XRP remain visible on the order book, leaving potential buyers facing a stark reality: any purchase attempt of 10 million XRP would start at around $2.60 per XRP and likely end closer to $15. This scenario underscores the impending supply squeeze affecting both public and private markets. Vincent Van Code’s analysis points to this imbalance. He observes that when buyers try to purchase large amounts of XRP, it quickly depletes available liquidity. 4 million XRP visible on Binance order books represent a critical challenge for large buyers as it drastically restricts their ability to influence the price in a controlled manner. The lack of sufficient liquidity has forced institutional buyers to resort to off-exchange channels like OTC and wholesale desks to acquire XRP discreetly. However, this reliance on private trading venues is also dwindling as fewer counterparties are willing to sell at current prices, leading to a feedback loop where supply shortages contribute to increased price volatility. 10 million XRP purchases will be met with a price jump as demand outpaces supply. Market-making algorithms and trading bots continue to operate but face increasing limitations as the lack of liquid sellers threatens their ability to execute large orders smoothly. This raises the question: How long can this fragile market balance hold? If Vincent Van Code’s analysis proves accurate, we could be witnessing a repeat of previous supply shocks in the XRP market. These events have historically triggered explosive price movements when demand surges unexpectedly. This underscores how deceptive crypto market depth can be. As institutional interest continues to grow and OTC liquidity dries up, the XRP market is poised for greater volatility. This emerging scenario requires careful consideration as investors navigate these potential challenges. Remember: this content is meant to inform and should not be considered financial advice.