XRP's exchange reserves are shrinking fast. Only 1.5 billion coins sitting on trading platforms now, down from absorbing 750 million XRP over recent weeks. That's a serious supply squeeze.

Where's the XRP going? Holders are moving it off exchanges—whether to cold storage, staking positions, or long-term accumulation. The fewer coins available for trading, the tighter liquidity gets.

Analysts are flagging early 2026 as the potential trigger point. Once available supply dips below critical thresholds, even normal trading volume could create noticeable price pressure. It's the classic supply-shock scenario: demand stays steady, but sellers have nowhere to go.

The math is simple. Fewer coins on exchanges = less selling pressure = conditions favoring upside moves. Whether that actually plays out depends on whether buyers show up at the right moments.