Researcher: The Hidden XRP Price Reset They Tried to Bury

The cryptocurrency landscape is no stranger to bold theories, but few have endured as persistently as the Shane Ellis model — a controversial 2018 proposition suggesting that XRP could experience a sudden, overnight price revaluation rather than a gradual rise.

Now, new developments in Ripple’s ecosystem are breathing life back into that theory, suggesting that the “hidden XRP price reset” may be more than just speculative fiction.

The Return of the Shane Ellis Theory

The Shane Ellis theory originated from a 2018 post that dissected how market mechanics could trigger a massive repricing of XRP in an instant. The premise was simple but radical: if global payment corridors powered by XRP went live and began moving trillions of dollars in value, market makers and liquidity providers would need to instantly revalue XRP to maintain liquidity.

For years, this idea was dismissed as implausible, a dream too extreme for traditional finance to accommodate. But in recent months, discussions around institutional adoption, liquidity infrastructure, and Ripple’s global partnerships have made this concept newly relevant.

Ripple Bull Winkle Revives the Debate

In a video posted on X, respected researcher and XRP advocate Ripple Bull Winkle reignited the conversation. He asserted that what was once deemed “speculative” is now aligning closely with ongoing technological and financial developments tied to Ripple’s ecosystem.

“The numbers don’t lie,” Bull Winkle emphasized. “The Shane Ellis theory from a 2018 post predicted XRP’s price wouldn’t just rise gradually, but revalue overnight once global liquidity corridors went live. It is not hype. This is all about mechanics.”

He elaborated further, comparing the XRP liquidity model to a toll road: “If trillions in payments start flowing through XRP, the market has to reprice it instantly so liquidity does not run dry. Think of it like a toll road, everyone. If the whole world starts driving through, the toll price is going to skyrocket overnight.”

Liquidity Corridors and Institutional Integration

Ripple’s On-Demand Liquidity (ODL) network already embodies the type of mechanism Ellis envisioned, using XRP to settle payments instantly without the need for pre-funded accounts. The recent expansion of ODL corridors, particularly in regions like Asia-Pacific, Europe, and the Middle East, signals that real-world liquidity routes are no longer theoretical.

Furthermore, Ripple’s launch of RLUSD, its U.S. dollar-backed stablecoin in December 2024, created a new bridge between fiat systems and crypto liquidity. Combined with Ripple’s strategic acquisitions of payments firms and its partnerships with banks and central institutions, this network infrastructure gives Ellis’s framework renewed credibility.

A Liquidity-Driven Revaluation Model

What makes the Ellis model particularly intriguing is that it doesn’t rely on speculation, hype, or retail demand. Instead, it’s rooted in liquidity mechanics, how markets automatically adjust prices to balance massive inflows of capital.

If global settlement systems begin routing significant transaction volumes through XRP, markets would be forced to recalibrate the asset’s value to prevent liquidity shortages.

In Bull Winkle’s words, “This is a liquidity-driven re-evaluation model, and now companies tied to Ripple are building the exact mechanism that Shane Ellis described back in 2018.”

From Theory to Potential Reality

Whether or not a dramatic overnight revaluation actually occurs, the framework that once seemed purely speculative is now intersecting with tangible progress. As Ripple’s payment corridors mature and more institutions integrate XRP for real-time settlements, the financial world edges closer to testing Ellis’s liquidity theory on a global scale.

For now, Ripple Bull Winkle’s analysis stands as a stark reminder: the hidden mechanics of financial infrastructure often determine the future of value far more than speculation ever could.