The XRP price has rallied 12% since its recent plunge, reclaiming crucial technical levels thanks to an unprecedented surge in network activity. Recent data from CryptoQuant confirms that the XRP ledger velocity hit a yearly high of 0.0324 this Wednesday, signaling massive institutional participation and renewed liquidity within the ecosystem.
According to CryptoOnchain’s analysis, this increase in velocity is no coincidence but indicates that the asset is being actively used in real economic transactions rather than remaining dormant. This phenomenon coincides with a period of user engagement reaching its peak in 2025, validating renewed interest. Additionally, spot average order size metrics have shown consistently high values for 30 consecutive days, suggesting that whales remain increasingly active in the spot market, accumulating strategic positions ahead of potential major bullish moves.
The context of this recovery is vital to understanding the asset’s underlying strength against general market volatility. XRP supply on exchanges has dropped dramatically, decreasing by 930 million tokens in just one month, reaching levels not seen since September 2018. This massive reduction in liquidity available for immediate sale suggests a lack of intention to sell by long-term holders, reinforcing the current bullish structure. Historically, such capital outflows into cold storage tend to precede phases of sustained value appreciation of the token in global markets.
Can institutional demand sustain the rally against immediate technical resistances?
Market implications are clear: the combination of high demand and reduced supply creates a favorable scenario for the continuation of the bullish trend. By reclaiming the 2.15 dollar support, backed by the 50-period simple moving average, the XRP price sits in a significant accumulation zone where 3.6 billion tokens were acquired. If buyers manage to defend this level, the path toward 2.50 dollars could clear quickly. Thus, institutional investors seem to be betting on an imminent breakout, reducing immediate sell-side pressure and stabilizing price action.
To conclude, XRP’s future outlook appears promising if current on-chain metrics and capital flow into investment products are maintained. The bullish divergence in the RSI and persistent inflows into spot ETFs indicate that an XRP rally is looking increasingly likely in the short term. However, it will be crucial to watch if the asset manages to consolidate above key resistances without retracing, which would definitively confirm the trend change in the cryptocurrency market.
