XRP price has risen 12% since it fell below $2 on November 21, reclaiming some key support levels. A surge in network activity and sustained institutional demand, coupled with a decrease in supply on exchanges, may drive the price to continue its recovery.
Key Points:
The XRP ledger velocity and a spike in whale activity indicate that network activity and demand are high.
The decrease in XRP supply on exchanges suggests that holders are accumulating strongly.
XRP bulls hope to establish strong support at $2.15 to prepare for the next leg up.
According to CryptoQuant, the XRP ledger velocity saw a sudden spike, reaching a year-to-date high of 0.0324 on Wednesday.
Velocity is a metric used to determine the frequency at which XRP circulates on the XRP ledger over a specific period.
CryptoQuant analyst CryptoOnchain noted in Wednesday's Quicktake analysis: "High velocity indicates that XRP is being actively used for 'economic activity and on-chain transactions' rather than being held." He further explained:
The analyst added that this data confirms that the XRP ledger "is experiencing one of the most active periods of 2025, with user engagement peaking."
Another chart from CryptoQuant shows that the average order size in the spot market has remained high for 30 consecutive days, indicating that whales have been continuously active in the spot market during this period.
High velocity and increased whale activity simply translate to more users, reflecting the adoption and interaction with the XRP token, positively impacting its price.
Data from Glassnode shows that the supply of XRP on exchanges has significantly decreased over the past 30 days.
The balance of XRP on exchanges dropped from 2.63 billion on November 1 to 270 million on Wednesday, a reduction of 930 million tokens, reaching the lowest level since September 2018.
The decrease in exchange balances indicates that holders are unwilling to sell, enhancing XRP's upside potential.
According to Glassnode data, this sharp decline coincided with record outflows from exchanges, with net positions of XRP between exchanges decreasing by 1.4 million XRP, marking the largest increase in history.
Such outflows typically indicate that large holders are accumulating strongly, transferring tokens to cold wallets or investing in investment products, thereby reducing immediate selling pressure.
XRP's recent price rebound has allowed it to reclaim the key support level of $2.15, which is also strongly supported by the 50-period simple moving average (SMA).
Analysis shows that whenever the XRP price has regained this trend line, it has triggered significant price rebound trends, as illustrated in the chart below.
Glassnode's UTXO Realized Price Distribution (URPD) data reveals the price levels at which current supply was created, clearly indicating that $2.15 is the most important support level for XRP, with investors accumulating 3.6 billion tokens at this price.
Cointelegraph previously reported that several other factors also support this bullish outlook, including ongoing inflows into spot ETFs and the appearance of bullish divergence in the RSI indicator on price charts, all of which suggest that the likelihood of an XRP price increase is continuously rising.
Related: Ripple (XRP) Faces "Make or Break" Moment as Traders Anticipate Rise to $2.50
Original: “XRP Price Shows Promise Above $2.15: Here’s Why”
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