XRP is experiencing a significant liquidity shift. ETF inflows totaling $1B are draining exchange reserves to their lowest point in seven years—a classic supply crunch scenario. The numbers here matter: when coins leave exchanges, they typically move into long-term holder wallets, reducing available trading liquidity.

What's changing the structural picture? Legal clarity around XRP finally cemented, plus the RLUSD stablecoin deployment are flipping market sentiment. That $2.00 price level? It's transitioning from resistance into a solid support floor—essentially the market repricing risk downward.

The combination of supply tightening and fundamental tailwinds suggests we're watching the setup for a potential breakout, though velocity will depend on broader market conditions.