A market commentator has suggested that investors planning to sell XRP and buy back later at lower prices may not be able to purchase the token again.
XRP has collapsed with the rest of the crypto market, leading to losses for investors who held past the $3.66 peak in July 2025. Today, XRP is down over 48% from that peak, as it currently trades for $1.90. At this price, XRP has dropped 37.5% in the past three months, on track to record a third consecutive monthly loss for the first time since late 2022.
With the bearish pressure dominating the scene and XRP losing the pivotal $2 support, market sentiments have slumped. In October, when the ongoing downtrend had just begun, market analytics resource Santiment found that XRP was already facing its highest level of bearish sentiment in six months.
You May Not Be Able to Buy XRP Back
Notably, such bearish sentiments often lead to retail selloffs, as investors without conviction take to selling off their bags out of panic. Moreover, some market participants may adopt the strategy of divesting their holdings amid the current market uncertainties and re-entering the market when the dust settles.
UnknownDLT, an anonymous XRP community commentator, has warned that such investors, especially those planning to buy back, may never get the opportunity again. According to his latest commentary, one reason why these individuals may find it difficult to repurchase their XRP tokens is an impending liquidity crisis.
Specifically, such a liquidity crisis could ensue in a situation where the available supply of XRP on public exchanges becomes too low for the competing investors looking to procure the token. While this could directly lead to large price swings, it may also make it difficult for investors to amass as much as they want except they bid for higher prices.
Due to their sufficient liquidity, no mainstream crypto asset has experienced such a situation at scale across multiple exchanges. However, UnknownDLT believes it may happen with XRP, citing the crypto asset’s touted role in the yen carry trade unwind in Japan.
The Yen Carry Trade Unwind
For context, with the Bank of Japan now raising interest rates after years of keeping them at zero and even negative, the yen carry trade, which involves institutions borrowing from Japan and leveraging that liquidity elsewhere, has begun to unwind.
As some of these institutions scramble to unwind their positions, they may require an efficient bridge asset to convert from the source currency to the destination currency. Market commentators like Bri Teresi, an American model, believe XRP could emerge as the ideal option. As a result, Chartered Financial Analyst Michael Gayed believes XRP’s true adoption could begin in Japan.
UnknownDLT suggests that when these institutions begin leveraging XRP for their cross-border transactions, the increased adoption could lead to the lockup of most of XRP’s available supply, leaving only a few tokens to the public. In addition, some analysts have insisted that the XRP ETFs could also dry up the available supply.
“They have to know that the institutions will be illiquid, imagine the exchanges,” the market pundit said. However, all this remains highly speculative. Notably, there’s no confirmation that the institutions involved in the yen carry trade unwind would actually adopt XRP.
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.
