Finance Expert Reveals When Real XRP Rally Will Start

The long-running legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) has reached a turning point. Both parties have filed to dismiss their appeals, closing this chapter of regulatory uncertainty.

While the outcome removes a significant obstacle for market sentiment, it does not, according to some experts, guarantee meaningful price appreciation for XRP in the near term.

Jake Claver, a financial expert and CEO of Digital Ascension Group, has suggested that the real driver of XRP’s next major move will not be its legal clarity. “XRP’s real move will come from a supply shock during a global liquidity crisis,” he stated, adding that much of the current price activity is speculation and institutional positioning ahead of possible spot ETF products.

Understanding the Supply Shock

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A supply shock occurs when the amount of XRP available for trading in the open market declines sharply. This can happen if large holders move significant quantities off exchanges into cold storage, institutions accumulate and hold long-term positions, or distribution schedules are slowed. When available liquidity is tight, buyers have fewer options, and even moderate purchasing activity can push prices upward more quickly.

In practical terms, a genuine supply shock can alter market behavior by reducing depth in the order books, widening spreads, and increasing slippage. With fewer tokens available, the cost of acquiring XRP at scale rises sharply, making upward moves more pronounced and difficult to reverse until new liquidity enters the market.

The Role of a Global Liquidity Crisis

While Claver identifies the supply shock as the key catalyst, he also connects it to the possibility of a global liquidity crisis. Such a crisis involves a sharp reduction in available capital and credit across financial markets. With those conditions, XRP could face heightened demand at precisely the moment the circulating supply is constrained.

This combination can create a price environment where even modest inflows have an outsized effect. The global liquidity crisis could amplify the consequences of reduced availability, helping XRP to grow rapidly.

Why Market Structure Matters More Than Sentiment

Claver’s argument rests on the idea that market mechanics, rather than headlines, will drive the most significant moves. XRP rallied from around $3 to $3.38 following the end of the lawsuit, but its inability to reclaim its all-time high of $3.65 following such monumental news adds credence to Claver’s belief.

While ending the legal battle may not cause the surge many market participants want, the positive price impact from a supply shock and liquidity crisis can be swift and substantial.

Disclaimer*: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.*