XRP Holds Above $2 as Network Activity Surges as Technical Indicators Signal Mixed Outlook
XRP is trading around $2.10. It has stayed over the critical $2 mark even though it has dropped more than 4.4% in the last 24 hours.
Quick overview
- XRP is currently trading around $2.10, having dropped over 4.4% in the last 24 hours but maintaining a position above the critical $2 mark.
- On-chain metrics indicate strong network activity and accumulation trends, with XRP Ledger velocity reaching a yearly high and a significant drop in tokens available on exchanges.
- The U.S. Federal Reserve's recent liquidity injection has positively impacted the cryptocurrency market, with XRP experiencing increased demand and price fluctuations.
- Analysts have mixed near-term predictions for XRP, suggesting a range between $2.14 and $2.48, but are generally optimistic about its long-term potential, with targets reaching up to $5.05 by late 2025.
As of this writing, XRP XRP/USD is trading around $2.10. It has stayed over the critical $2 mark even though it has dropped more than 4.4% in the last 24 hours. Even while short-term prices are still under pressure, on-chain indicators and institutional flows show that the fourth-largest cryptocurrency by market capitalization has a better chance of doing well.
Onchain Metrics Show Strong Network Activity and Accumulation Trends
XRP Ledger velocity has hit a yearly high of 0.0324, which means that people are using the token for transactions instead of just keeping it in wallets. This high speed means that there is more liquidity and that both retail trades and large holders, also known as whales, are very involved. These numbers, along with consistently high spot average order sizes for 30 days in a row, show that XRP is having one of its busiest times in 2025.
The amount of XRP available on centralized exchanges has dropped to levels not seen since September 2018, which is maybe the most important thing to note. Over the past 30 days, exchange balances have declined by over 930 million tokens, leaving about 2.7 billion XRP. This big drop in the amount of tokens accessible for trade usually means that holders are relocating their tokens to cold storage and don’t plan to sell them right away. This lowers the pressure to sell and strengthens the base for possible price increases.
The drop in exchange balances happened at the same time as record outflows. The net position change among exchanges fell by 1.4 million XRP, which was the biggest single-day spike ever. These changes signal that institutional investors and whales are buying a lot of assets in order to make money in the future.
XRP/USD Technical Analysis: Critical Support Levels and Moving Average Dynamics
From a technical point of view, XRP is currently at a key support level of $2.15, which is where the 50-period simple moving average on the four-hour chart is located. In the past, XRP’s price has made big recovery after regaining this trendline. The UTXO realized price distribution data shows that $2.15 is the most important support zone, where investors bought about 3.6 billion tokens.
But the bigger technical picture reveals some signs of a bear market. The 50-day and 200-day moving averages show weakening patterns on shorter periods, and both indicators have been going down in recent sessions. The Relative Strength Index is currently at 50.65, which is in the middle of the range. This means that the market doesn’t have a distinct direction right now.
Even while there are problems in the short term, weekly charts show a more positive picture. The 50-day moving average is going up on the weekly time frame and is below the current price. This could help during pullbacks. The 200-day moving average has also been going up since mid-2024, which shows that the long-term trend is still going strong.
Federal Reserve Liquidity Injection Provides Macro Tailwind
The U.S. Federal Reserve’s conclusion of its Quantitative Tightening program gave the larger cryptocurrency market a big lift. It put more than $13 billion into markets through overnight repo operations. This is the biggest liquidity injection in years and a big change in monetary policy.
In the past, times when liquidity was high have been good for risk assets, such as cryptocurrency. After the Fed’s statement, Bitcoin soared almost 4% to $93,800, and XRP rose more than 8% at one time, reaching $2.18 as demand grew. Paul Barron, a crypto investor, said that tokens that are clearly useful for moving money rapidly and cheaply tend to respond more swiftly to liquidity expansions. This could mean that XRP will profit if this trend continues.
XRP ETF Inflows Demonstrate Growing Institutional Interest
The new XRP spot ETFs have been a major source of demand, bringing in more than $800 million over 13 days of positive net flows. As of early December, these products have about $906 million in combined net assets, which puts them close to the $1 billion mark.
This institutional acceptance is a big change in how traditional investors can have access to XRP, which could change how the market works. The steady daily inflows imply that institutions are still interested, not just a short-term speculative rush. This is good news for price stability and long-term growth.
XRP Price Prediction: Conservative Near-Term Outlook with Bullish Long-Term Potential
Different analysts have different ideas on XRP’s long-term potential, based on the time frame and approach they use. Some analysts think that the token might trade between $2.14 and $2.48 in the near future, and if the present bearish trend continues, it could challenge support at $1.80.
But expectations for the long run are far more positive. A lot of analysts think that XRP might reach $2.85 by the end of December 2025 if it can hold support above $2.15 and break through the $2.35 resistance level. Looking ahead, price targets for late 2025 range from $3.50 to $5.05. These targets depend on more people using ETFs, clearer rules from the Trump administration, and a stronger overall cryptocurrency market.
Some very bullish predictions go much higher, with some analysts saying that objectives of $20 or more are possible. However, these scenarios depend on big changes in the fundamentals, such as Ripple’s payment networks being widely adopted by institutions and huge legislative achievements.
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