THE $1 BILLION DISAPPEARING ACT: RIPPLE LOCKS 500M XRP UNTIL 2028 AMID $2 SURGE!

As 2026 begins, Ripple is making a massive power move to tighten the reins on XRP’s circulating supply. In a strategic maneuver that has sent shockwaves through the market, over 500 million XRP worth more than $1 billion at current prices have been officially pulled from circulation and locked into an escrow mechanism until at least 2028. This deliberate reduction in liquid supply has acted as a nitro boost for XRP’s price, which has successfully reclaimed the psychological $2.00 level and briefly flipped BNB in market capitalization. With “Long-Term Holders” (LTHs) switching back into aggressive accumulation mode, the stage is set for a structural supply shock that could redefine XRP’s trajectory for the rest of the year. I. The 2028 Lockup: Engineering a Scarcity Event The recent transfer of 500 million XRP into a multi-year escrow is not just a routine administrative task; it’s a clear signal of long-term supply management. By removing $1 billion worth of liquidity from the open market, Ripple is effectively reducing the “sell-side” pressure that often hampers price rallies. In an environment where institutional and enterprise demand for XRP remains persistent, this artificial scarcity creates a “coiled spring” effect. With fewer tokens available for purchase on exchanges, even modest increases in demand can now lead to outsized price reactions, potentially launching XRP toward levels previously thought unattainable in the short term. II. The HODLer Reversal: Smart Money is Stacking Again On-chain metrics are backing up the bullish price action. The “HODLer Net Position Change” metric reveals a significant shift: after nearly a month of steady selling pressure, long-term holders have officially returned to accumulation. These “diamond hand” investors typically exit during periods of extreme uncertainty and re-enter only when they believe a sustained upside is inevitable. Their return suggests that the recent dip below $2.00 was viewed as a generational buying opportunity. Because these older wallets sell less aggressively during pullbacks, their presence provides a new, higher floor for XRP, reducing the risk of the “flash crashes” that plagued the asset in late 2025. III. The $2.10 Target: Securing the Psychological Throne At the time of writing, XRP is trading near $2.00, marking a 6.7% gain in just 24 hours. However, the battle for $2.00 is far from over. To confirm a true bullish continuation, XRP must secure this level as firm support and push through immediate resistance at $2.03. If successful, the next logical stop is $2.10, a zone characterized by significant historical liquidity. On the flip side, the risk of profit-taking by short-term holders remains. If XRP fails to hold $2.00, it could slip back to $1.93 or even $1.86, which would temporarily invalidate the current “supply shock” narrative and restore a neutral outlook. IV. Essential Financial Disclaimer This analysis is for informational and educational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency investments, particularly XRP, involve high levels of risk and volatility. While escrow lockups can reduce circulating supply, they do not guarantee price increases. Market conditions, regulatory changes, and broader macroeconomic factors can all impact the value of digital assets. Historical patterns of accumulation by long-term holders are not a guarantee of future price performance. Always conduct your own exhaustive research (DYOR) and consult with a licensed financial professional before making any investment decisions.

Is Ripple’s $1 billion lockup the spark that finally sends XRP to a new all-time high? Are you following the “smart money” and accumulating at $2.00, or are you waiting for a deeper dip to $1.86? Share your 2026 XRP price target in the comments below! Let’s see if the supply shock is real.