The XRP price has spent months moving through unstable market conditions, but one new discussion is starting to change how traders look at Ripple’s massive escrow holdings.
Ripple still controls roughly 35.6 billion XRP locked in escrow, based on XRPScan-linked data from 2025. For years, many investors viewed those tokens as future sell pressure because Ripple unlocks part of the escrow every month.
But now some analysts believe those reserves could eventually become one of the biggest bullish catalysts for the XRP price if they are deployed into XRP Ledger AMM pools instead of being sold into the market.
AMM pools are automated liquidity systems that allow users to swap assets instantly through smart contracts. Instead of waiting for buyers and sellers to match orders manually, liquidity comes directly from the pool itself. On the XRP Ledger, these AMMs also connect with the network’s built-in order book, helping trades access the best available pricing across both systems.
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Why Traders Think This Could Help the XRP Price
The bullish argument mainly comes down to supply and utility. Liquidity providers inside AMM pools earn fees from trading activity, which encourages participants to keep XRP locked inside pools for longer periods. If XRP Ledger adoption continues growing for cross-border settlement and institutional finance, demand for those liquidity pools could rise quickly.
Some traders also believe the CLARITY Act could accelerate this process. The proposed legislation aims to create clearer crypto regulations in the United States, especially around which digital assets qualify as commodities instead of securities. If regulatory conditions improve further, Ripple could have more flexibility deploying escrow reserves directly into XRP Ledger infrastructure.
Institutional demand around XRP has already started improving. Spot XRP ETFs reportedly recorded around $60.5 million in net inflows last week, pushing cumulative inflows to approximately $1.39 billion. Whale wallets have also accumulated more than 4 billion XRP since the October 2025 crash, increasing their control of circulating supply to roughly 32%.
That creates an interesting situation where larger investors continue buying even though the XRP price still trades far below earlier cycle highs.
XRP Market Structure Still Looks Constructive
We also had a look at XRP’s market cap chart, and the broader structure still looks healthy despite weaker momentum in the short term.
XRP market capitalization rallied close to the $98 billion-$100 billion area earlier this year before entering a consolidation phase. Since then, market cap has stayed above the 100-period simple moving average near $87.84 billion, which traders are now treating as one of the most important support zones on the chart.
Momentum indicators have cooled down noticeably. RSI sits around 45.7 in neutral territory after multiple bearish divergences appeared during the previous rally. That usually points to slowing momentum instead of aggressive panic selling.
As long as XRP market cap remains above the $87 billion-$88 billion region, traders still believe another push toward the $92 billion-$94 billion resistance area remains possible. If buyers reclaim that level with strength, attention could quickly return toward the $100 billion market cap zone again.
Since XRP market cap and the XRP price move closely together, defending this support structure is extremely important for bulls.
Read Also: Crypto Price Prediction for Today, May 17: XRP, Terra Classic (LUNC), Bitcoin (BTC)
ChatGPT’s XRP Price Prediction
Using the current supply structure, ETF inflow data, whale accumulation trends, and the possibility of Ripple deploying escrow reserves into AMM pools, ChatGPT sees a potentially bullish setup developing for the XRP price over time.
The biggest factor is the potential reduction in freely circulating supply. If billions of XRP become locked inside liquidity infrastructure, the market could eventually experience much tighter supply conditions during periods of stronger demand.
Under that scenario, ChatGPT estimates the XRP price could initially recover toward the $1.80-$2.20 range if market cap successfully reclaims the $92 billion-$100 billion zone. If institutional adoption expands further through ETF demand, payment settlement usage, and XRP Ledger liquidity growth, larger upside targets above $3 could eventually enter the conversation.
For now though, traders are still watching the support structure first. The XRP price continues holding above critical market cap support, but bulls still need stronger momentum before the next major breakout attempt can fully develop.
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