Analyst Warns: You Might Not Be Able to Buy $XRP Again if You Sell Now
A market analyst has cautioned that investors planning to sell XRP now and repurchase it later at lower prices might miss the chance to buy back the token.
$XRP has fallen sharply along with the broader crypto market. From its $3.66 peak in July 2025, XRP is now trading around $1.90, marking a decline of over 48%. In the last three months alone, it has dropped 37.5%, on track for its third consecutive monthly loss—the first since late 2022.
The break below the crucial $2 support level has fueled bearish sentiment. Back in October, Santiment reported that XRP had already reached its highest level of bearish sentiment in six months, signaling growing retail panic and sell-offs.
Why Buying Back May Become Hard
UnknownDLT, an anonymous XRP community commentator, warned that investors planning to sell and later re-enter could struggle to repurchase their XRP. The reason: a potential liquidity crisis. If the available supply of XRP on exchanges dwindles while demand rises, investors may face steep prices or limited availability. Unlike mainstream cryptocurrencies, XRP could see significant scarcity on public exchanges, especially if institutional demand surges.
The Yen Carry Trade Unwind
The Bank of Japan’s recent rate hikes are triggering an unwind of the yen carry trade, where institutions borrow in yen to invest elsewhere. Some commentators, including Bri Teresi and CFA Michael Gayed, suggest XRP could become a preferred bridge asset for these cross-border transactions.
If institutions begin using XRP extensively, much of the circulating supply could be locked up, leaving few tokens for retail investors. XRP ETFs could further limit supply, exacerbating the scarcity.
UnknownDLT cautions, however, that this scenario is speculative. There’s no confirmation yet that institutions involved in the yen carry trade unwind will adopt $XRP
.