Will It Reignite Its Bull Market Trend?

XRP (XRP) price has increased by 12% since falling below the $2 threshold on Nov. 21, regaining critical support levels. Rising network activity and ongoing institutional interest, combined with a decrease in available supply on exchanges, may foster a continued price rebound.

Key takeaways:

• An increase in XRP ledger velocity and whale activity suggests heightened network engagement and demand.

• A reduction in XRP supply on exchanges points to significant accumulation by investors.

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

XRP Ledger velocity reaches 2025 highs

XRP ledger velocity has experienced a notable spike, reaching a yearly high of 0.0324 on Wednesday, according to data from CryptoQuant.

Velocity measures how frequently XRP circulates across the XRP Ledger over a set timeframe.

Related: XRP encounters a ‘now or never’ situation as traders target a rise to $2.50

High velocity signifies active use of XRP in “economic activity and on-chain transactions” rather than being held, stated CryptoQuant analyst CryptoOnchain in a Quicktake analysis, adding:

“This rise generally denotes high liquidity and significant trader involvement or substantial movements by whales.”

This data affirms that the XRP Ledger is “undergoing one of its most active phases in 2025, with user participation hitting a peak,” the analyst added.

Another chart from CryptoQuant revealed consistently elevated values in the average order size metric over 30 consecutive days, indicating increased whale activity in the spot market during this period.

High velocity and heightened whale participation translate to a larger user base, signifying adoption and interaction with the XRP token, which positively affects its price.

XRP balance on exchanges reaches seven-year lows

A significant decline in XRP supply on exchanges has been observed over the past 30 days, based on data from Glassnode.

XRP balance on exchanges shrank by 930 million tokens to 2.7 billion on Wednesday, down from 2.63 billion on Nov. 1, the lowest levels seen since September 2018.

A contracting balance on exchanges indicates a lack of selling intention by holders, strengthening the potential for XRP to rise.

This notable decrease coincided exactly with record exchange outflows, as the XRP net position change among exchanges fell by 1.4 million XRP, representing the largest surge on record, according to Glassnode data.

Such outflows usually indicate robust accumulation by large holders, who transfer tokens to cold storage or invest in investment products, thereby lessening immediate selling pressure.

XRP maintains strong support above $2.15

XRP’s recent recovery has enabled it to retake a crucial support level at $2.15, which is additionally backed by the 50-period simple moving average (SMA).

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

Glassnode’s UTXO realized price distribution (URPD), which showcases the prices at which the current supply was formed, points to $2.15 as the critical support for XRP, where 3.6 billion tokens were acquired by investors.

As Cointelegraph noted, several additional factors, such as ongoing spot ETF inflows and a bullish divergence in the RSI on the price charts, suggest that an XRP rally appears increasingly likely.

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.