Is It Capable of Reestablishing Its Bull Market Momentum?

XRP (XRP) has increased by 12% since dipping below the $2 threshold on Nov. 21, regaining crucial support levels. Rising network activity and ongoing institutional interest, coupled with diminished supply on exchanges, may pave the way for a sustained price rebound.

Key insights:

• An uptick in XRP ledger velocity and whale involvement indicates heightened network activity and demand.

• A reduction in XRP supply on exchanges suggests robust accumulation by holders.

• XRP price bulls aim to establish firm support at $2.15 for the next upward movement.

XRP Ledger velocity reaches 2025 peaks

The XRP ledger’s velocity has experienced a significant surge, rising to a yearly high of 0.0324 on Dec. 3, according to data from CryptoQuant.

Velocity serves as a metric to assess the frequency of XRP’s circulation within the XRP Ledger over a specified timeframe.

Related: XRP confronts a ‘now or never’ moment as traders anticipate a rally to $2.50

High velocity indicates that XRP is actively utilized in “economic activity and on-chain transactions” instead of being hoarded, noted CryptoQuant analyst CryptoOnchain in a Dec. 3 Quicktake analysis, adding:

“Such a surge typically indicates high liquidity and significant engagement from traders or large movements by whales.”

This data confirms that the XRP Ledger is “experiencing one of its busiest periods in 2025, with user participation at a peak,” the analyst added.

Another chart from CryptoQuant indicated consistently elevated values on the Spot Average Order Size metric for 30 days straight, suggesting that whales remained highly active in the spot market during this timeframe.

Increased velocity and whale activity simply signify greater user involvement, indicating adoption and engagement with the XRP token, positively affecting its value.

XRP balance on exchanges falls to seven-year lows

A notable decline in the XRP supply on exchanges has occurred over the past 30 days, according to data from Glassnode.

The XRP balance on exchanges decreased by 930 million tokens to 2.7 billion on Dec. 3 from 2.63 billion on Nov. 1, levels last recorded in September 2018.

The declining balance on exchanges reflects a lack of intent to sell by holders, strengthening the upside potential for XRP.

This sharp drop coincided precisely with unprecedented exchange outflows, as the XRP net position change among exchanges fell by 1.4 million XRP, marking the largest spike on record, according to Glassnode data.

Such outflows often signal strong accumulation by large holders, who transfer tokens to cold storage or invest in various products, thereby alleviating immediate selling pressure.

XRP rests on solid support above $2.15

XRP’s recent resurgence has allowed it to regain a crucial support level at $2.15, which is bolstered by the 50-period simple moving average (SMA).

Reclaiming this trendline has historically preceded significant XRP price recoveries, as illustrated in the chart below.

Glassnode’s UTXO realized price distribution (URPD), which reveals the prices at which the current supply was generated, indicates that $2.15 is the most critical support for XRP, where investors acquired 3.6 billion tokens.

As reported by Cointelegraph, several additional factors, such as ongoing spot ETF inflows and a bullish divergence in the RSI on price charts, suggest that an XRP rally is becoming increasingly probable.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.