XRP Buy Signal? Analyst Targets Key Levels

What to Know:

• An analyst suggests the market is underestimating the impact of the forthcoming CLARITY Act on XRP’s supply dynamics.
• The CLARITY Act, expected by 2026, could force Ripple to clarify the future of its 34.4 billion XRP held in escrow.
• Rather than hitting the open market, this XRP could be allocated to banking corridors, sovereign payment rails, and institutional frameworks, embedding XRP into global financial infrastructure.

Speculation is mounting regarding the future utility of XRP, particularly as regulatory clarity approaches. One analyst believes the market is overlooking a key development: the potential impact of the CLARITY Act on Ripple’s XRP holdings. With the Act potentially arriving by 2026, the analyst suggests Ripple’s strategy for its escrowed XRP will surprise many.

Escrowed XRP: Infrastructure, Not Overhang

The core argument suggests the 34.4 billion XRP held in escrow won’t flood the market. Instead, it’s likely earmarked for specific, large-scale use cases tied to global finance. This includes potential allocation across banking corridors, sovereign payment rails involving governments and central banks, liquidity hubs supporting G20 cross-border settlements, and institutional frameworks linked to entities such as the IMF and BIS. The analyst posits that this pre-allocation transforms perceived “overhead supply” into locked liquidity.

From Market Dump to Core Infrastructure

Investor anxieties over a massive selloff may be misplaced. The more probable outcome is that the locked tokens flow into banks, foreign-exchange routes, and regulated custody systems rather than being dumped on exchanges. This outcome would embed XRP into the core infrastructure of global financial systems, fundamentally altering its market dynamics. The transition from potential selling pressure to a foundational element of global finance represents a significant shift in perception and valuation.

The CLARITY Act as a Catalyst

The passage of the CLARITY Act is not necessarily a prerequisite for XRP’s repricing. Markets often react to expectations, not just finalized legislation. History shows that waiting for official documents risks missing the classic crypto pattern of “buy the rumor, sell the news.” XRP has surged ahead of regulatory milestones in the past, and the analyst suggests a similar pattern may emerge as the CLARITY Act nears passage.

Historical Precedent and Future Expectations

Looking back, XRP experienced a substantial surge from $0.50 to $3.40 between November 2024 and January 2025, ultimately reaching $3.66 by July 2025. This rally occurred well before serious Senate discussions about the CLARITY Act. This historical precedent highlights the potential for significant market movement based on anticipation of regulatory developments. Investors who delay buying until full regulatory certainty may miss the initial breakout entirely.

Repricing and Market Reaction

Once Ripple publishes an official escrow roadmap, the market reaction could be swift. Clarity around allocation and utility could trigger a rapid, demand-driven repricing of XRP. The analyst concludes that selling XRP now, without considering the regulatory and structural changes ahead, may be a decision some investors come to regret later. However, as with all crypto assets, uncertainty remains and investors should conduct thorough due diligence.

Related: XRP Signals Bottom or Collapse Via Bollinger Bands

Source: Original article