The XRP price can explode due to thinning order books in Binance and drying up OTC supply, indicating a significant increase in price in the near future.
The price of XRP has remained largely stagnant at approximately $2.60, trailing behind Ethereum and Solana price surges this week.
However, VIP XRP supporter and software engineer Vincent Van Code noted something shocking on the X social media page: the XRP order book on Binance only has around 4 million tokens, an unusually small amount of tokens on one of the biggest exchanges.
Source- X
Van Code cautioned that a hypothetical 10 million XRP buy directly on Binance would begin at $2.60 and might hit as high as $15 since there would be little liquidity.
This situation is possible since major investors tend not to buy the market at once to eliminate price boom but rather OTC or wholesale transactions to be stable.
Nevertheless, these over-the-counter channels are said to be drying up as an increasing number of holders put away XRP rather than sell it.
Binance’s Order Book: A Hidden Danger
The small apparent supply on the Binance order books is a picture of a weak market. When a high buy order scatters over thin liquidity, the reaction is a violent price movement.
According to the analysis by Van Code, the market depth is not as large as it appears; the real amount of XRP units that can be sold immediately is much less than it appears.
This implies that XRP may be considered spring-loaded, with the possibility of abrupt, exaggerated price action as demand picks up.
The exchange and OTC liquidity constraints increase as institutional and long-term holders lock their holdings, which preconditions explosive price discovery.
Quiet Before the Storm?
The existing stagnation of XRP prices indicates the cautious behavior of traders who are likely waiting to receive a powerful stimulus in the market, like the ETF approvals, new partnerships, or growth of institutional flows.
Market makers stabilize prices by maintaining liquidity, which helps avoid a sharp price movement in the short term.
However, as supply diminishes over the exchanges and OTC desks, even a modest buying pressure would cause sharp rallying.
This is in contrast to the now subdued performance of XRP in comparison to Ethereum and Solana, a market that is ready to change unexpectedly.