A dramatic supply shock in the XRP market has fueled a bullish momentum, with exchange balances plummeting by over 45% in just 60 days. This decline, according to recent Glassnode data, is causing significant ripples through the crypto markets as a potential for a price rebound emerges. 2.6 billion XRP tokens remain on exchanges today – down from 3.95 billion tokens held just two months ago. This exodus of assets signals a shift away from centralized platforms and positions XRP for a potential breakout toward $1. analysts highlight that this trend is likely driven by major holders aggressively accumulating the token, fueled by its strong application in cross-border payments and Ripple’s expanding ecosystem. Binance reserves – one of the largest exchanges for XRP trading – have witnessed a significant decline of $640 million, adding to the pressure on liquidity. Regulatory wins, especially the long-awaited SEC lawsuit resolution in favor of XRP, are also bolstering investor confidence. This positive shift has led to increased institutional interest, as evidenced by prominent ETF filings from companies like BlackRock and Fidelity. These developments have brought a surge of activity, reminiscent of Bitcoin’s post-ETF rally in previous years. While potential risks such as the impact of upcoming Fed rate hikes remain, analysts are optimistic about XRP’s performance. If the supply shock continues to accelerate, reaching $1 might become a tangible reality, with increased transaction volumes on the XRP Ledger further supporting this belief.