• As the XRP Price fails to surge past $0.60, institutional demand for liquidity, rather than retail speculation, could drive the next price surge.
• Ripple’s 1,700-plus undisclosed partnerships with major banks and financial institutions, handling trillions in daily settlements, may significantly increase demand for XRP liquidity.

Ripple’s XRP is at a critical juncture as bulls fiercely defend the $0.5785 support level. Moreover, they are eyeing potential breakouts at key resistance levels of $0.5920 and $0.600. While retail investors remain fixated on price charts, the real driver behind the XRP price surge could lie in the liquidity needs of major banks.

XRP Price Surge Tied To Bank Liquidity

In a detailed analysis shared on X (formerly Twitter), crypto analyst CryptoTank emphasized the limited role retail investors play in XRP price movements. He argued that institutional demand will be the real determinant of XRP’s value. “Retail doesn’t matter, which is why retail doesn’t move price much at all,” the analyst noted.

He suggested that the daily settlement requirements of banks and financial institutions are far more significant factors. For context, Ripple boasts over 1,700 undisclosed agreements with financial institutions, many of which are under non-disclosure agreements (NDAs). 

These agreements are believed to encompass some of the world’s largest banks and financial institutions. These include names like Bank of America (BofA), SBI, JP Morgan, and Swift. According to CryptoTank, these institutions handle approximately $25-30 trillion in combined daily settlements. On the other hand, Ripple partners like SBI holdings have been driving major XRP adoption, reported CNF. 

“If just 10% of that goes through XRP, that’s $3 trillion on the ledger,” he explained. The analyst further noted that banks will need “deep liquidity pools” to ensure smooth transactions and prevent costly transaction failures.

“When a bank moves value to another for settlement, that will need DEEP liquidity pools to pull value from, or else the transaction could fail,” he stated, highlighting the importance of liquidity depth in the success of XRP-based settlement systems.

Ripple Maintains A Huge Liquidity Pool

In practical terms, this means the liquidity pool must be at least double the value of the transactions to avoid friction and ensure counterparties are available. For the $3 trillion in daily settlements, this implies a liquidity pool of around $6 trillion. And this estimate covers just a few major institutions. 

Considering Ripple’s 1,700-plus undisclosed partnerships, the actual liquidity demand could be much higher. “The numbers I gave are just an example of a few big ones. Imagine the size of the pool needed for them all,” CryptoTank added.

This massive demand for liquidity could, in turn, drive up the XRP price. It’s because financial institutions require a steady supply of the token to facilitate seamless cross-border payments and settlements. Recently, the South Korean payment platform Surfy integrated XRP payments and reported CNF. 

While much of the crypto market relies on technical analysis and price charts to predict future movements, CryptoTank argues that such methods are irrelevant to XRP. “Charts don’t matter because you can’t chart utility and value/volume these institutions will need, nor the depth of liquidity the pools need,” he asserted.

Currently, XRP is consolidating around crucial support and resistance levels with strong whale activity, per the CNF report. Hence, the market’s next big move could be driven by liquidity needs rather than speculative retail activity. If key resistance points are breached, bulls may push the price higher. Here, the major factor behind the surge will be the token’s utility in settling large-scale institutional transactions.

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