As investors await a major XRP upsurge, several analysts now warn that selling during the next big rally might not be as easy as many think.
Specifically, these market pundits believe that once XRP prices start to soar, liquidity on many exchanges could dry up, making it difficult for holders to sell their tokens at the prices they expect.
Claver Calls for Proper Preparation
Jake Claver, the CEO of Digital Ascension Group, first presented this warning in a statement earlier this month. He explained that when XRP sees strong price movement, most exchanges won’t have enough liquidity to handle large sell orders at market value.
He believes this shortage will lead to a supply shock that allows big institutional investors to dominate OTC (over-the-counter) trades, leaving regular traders stuck with fewer options.
Claver also said that too many investors expect overnight wealth without preparing for the realities of such an event. He urged XRP holders to take control of their assets, build a tax plan, and create a good wealth strategy before any major price surge. According to him, without these preparations, many could miss out on what might have been generational wealth.
Why Selling at High Prices During Market Rallies Might Be Difficult
Interestingly, fellow community pundit Diana recently highlighted Claver’s warning, saying that most XRP investors underestimate how liquidity works during market rallies.
She explained that many people plan to “sell at $10” once XRP moons, but the market rarely works that neatly. Notably, if too many traders try to sell at once, the market may not have enough buyers to fill all those orders at that same price. She said this could create thin liquidity, with prices moving fast because the market can’t absorb all the trades.
Diana noted that this causes price slippage. She then presented an instance where, if you try to sell at $10, your order might actually fill at $8.50, costing you thousands of dollars in just seconds, depending on how large the order was.
The market pundit compared the situation to being at a crowded concert when the fire alarm goes off. Notably, in such a scenario, everyone rushes to the same small exit at once, but not everyone can get out quickly. According to her, that is exactly what happens when everyone tries to sell at the same time during a parabolic rally.
She also pointed out that XRP’s situation is even trickier because of how institutions trade. Specifically, while retail traders use exchanges like Coinbase and Kraken, large institutions, such as banks, hedge funds, and corporations, trade privately through OTC deals. These private transactions pull liquidity away from public markets, especially during periods of heavy demand.
Ripple’s GTreasury Deal Could Lead to Tighter XRP Liquidity
Diana highlighted Ripple’s $1 billion acquisition of GTreasury as one factor that could tighten liquidity further. For context, the deal moves even more XRP into corporate payment systems, leaving less available for trading on public exchanges.
She noted that while this move boosts XRP’s real-world use and strengthens its position in global finance, it could make cashing out harder for retail investors when prices skyrocket.
The pundit then urged XRP holders to prepare early instead of waiting for the market to heat up. She advised moving tokens off exchanges into private wallets, setting sell targets ahead of time, and using limit orders to protect against slippage.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
