XRP Starts 2025 with a Bang, Will the Rally Continue?
Ripple Labs’ native token XRP is off to a strong start in 2025 with an impressive performance. However, some have questioned whether this performance was driven by bullish price action or a shift in market sentiment. In this article, we will explore the factors behind Ripple recent rally and determine if this is an ideal time to invest in the coin.
Why is XRP rising?
Data from on-chain analytics firm CryptoQuant shows that exchanges’ XRP reserves have dropped significantly. what does that mean? This shows that whales and long-term holders withdrew XRP tokens from exchanges before the rally began, indicating a massive accumulation of XRP.
according to Crypto quantification Data shows that whales have withdrawn 20 million XRP tokens from Binance, causing the exchange’s reserves to fall from 2.94 billion to 2.92 billion over the past seven days. Additionally, the exchange witnessed a massive outflow of 519.82 million XRP tokens. This highlights the extent to which long-term holders have accumulated over the same period.
These on-chain indicators explain other factors behind XRP’s recent rise. However, this data is limited to Binance, which has the majority of cryptocurrency users compared to other exchanges. In addition to centralized exchanges, decentralized exchange (DEX) trading volumes appear to be continuing to rise, which is also a positive sign for XRP holders.
XRP current price and upcoming levels
Currently, XRP is trading close to $2.40, with the price surging by more than 4.65% in the past 24 hours. During this period, significant price increases and breakouts led to a surge in trader and investor participation, resulting in a 35% increase in trading volume.
According to expert technical analysis, XRP is looking bullish after breaking out of the flagpole price action pattern, although it currently appears to be retesting the breakout levels. Based on recent price action and historical momentum, if XRP sustains support above the $2.30 mark, it could rise by 80% to $4.40 levels in the future.
The combination of bullish on-chain indicators, growing DEX trading volume, and strong technical patterns make XRP a promising investment in 2025. However, investors should remain cautious and monitor key support levels, especially around $2.30.
