XRP (XRP) has risen 12% since dropping below the $2 mark on Nov. 21, regaining essential support levels. Increased network activity and ongoing institutional interest, alongside diminished supply on exchanges, may contribute to a lasting price recovery.
Key takeaways:
Increased XRP ledger velocity and whale engagement indicate heightened network activity and demand.
A reduction in XRP supply on exchanges suggests strong accumulation from holders.
XRP price bulls aim to establish robust support at $2.15 for the next upward movement.
XRP Ledger velocity reaches 2025 highs
XRP ledger’s velocity has experienced a sudden increase, hitting a yearly peak of 0.0324 on Wednesday, according to data from CryptoQuant.
Velocity measures the frequency at which XRP circulates across the XRP Ledger over a specified timeframe.
Related: XRP faces ‘now or never’ moment as traders eye rally to $2.50
High velocity indicates that XRP is actively utilized in “economic activities and on-chain transactions” instead of being held, stated CryptoQuant analyst CryptoOnchain in a Wednesday Quicktake analysis, adding:
“Such a surge typically signifies high liquidity and substantial involvement from traders or significant movements by whales.”
This data confirms that the XRP Ledger is “in one of its most active periods in 2025, with user engagement peaking,” the analyst noted.
Another chart from CryptoQuant displayed consistently elevated values in the spot average order size metric for 30 days straight, indicating increased whale activity in the spot market during this timeframe.
High velocity and increased whale activity simply lead to more users, highlighting adoption and interaction with the XRP token, positively affecting its price.
XRP balance on exchanges reaches seven-year lows
Over the past 30 days, there has been a notable drop in XRP supply on exchanges, as shown by data from Glassnode.
XRP balance on exchanges decreased by 930 million tokens to 2.7 billion on Wednesday from 2.63 billion on Nov. 1, marking levels last seen in September 2018.
A declining balance on exchanges indicates a reluctance to sell among holders, reinforcing XRP’s upward potential.
This significant drop coincided exactly with record exchange outflows, as the XRP net position change among exchanges fell by 1.4 million XRP, marking the largest spike in history, according to Glassnode data.
Such outflows generally signal strong accumulation by major holders, who transfer tokens to cold storage or invest in products, thereby alleviating immediate sell-side pressure.
XRP rests on strong support above $2.15
XRP’s recent recovery witnessed it reclaim a crucial support level at $2.15, which is further reinforced by the 50-period simple moving average (SMA).
Reclaiming this trendline has historically preceded significant recoveries in XRP price, as indicated in the chart below.
Glassnode’s UTXO realized price distribution (URPD), which illustrates the prices at which the current supply was generated, shows that $2.15 is the most critical support for XRP, where investors acquired 3.6 billion tokens.
As Cointelegraph reported, various other factors, such as ongoing spot ETF inflows and a bullish divergence in the RSI on the 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.
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. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
