XRP (XRP) price is up 12% since plunging below the $2 mark on Nov. 21, reclaiming key support levels. Surging network activity and persistent institutional demand, coupled with reduced supply on exchanges, could lead to a sustained price recovery.
Key takeaways:
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A surge in XRP ledger velocity and whale activity signals elevated network activity and demand.
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A decrease in XRP supply on exchanges indicates strong accumulation by holders.
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XRP price bulls look to establish strong support at $2.15 for the next leg up.
XRP Ledger velocity hits 2025 highs
XRP ledger’s velocity rose has seen a sudden spike, rising to a yearly high of 0.0324 on Dec. 3, per data from CryptoQuant.
Velocity is a metric used to determine the frequency of XRP’s circulation across the XRP Ledger over a given period.
Related: XRP faces ‘now or never’ moment as traders eye rally to $2.50
High velocity indicates XRP is actively used in “economic activity and onchain transactions” rather than held, said CryptoQuant analyst CryptoOnchain in a Dec. 3 Quicktake analysis, adding:
“Such a surge typically signifies high liquidity and substantial involvement from traders or significant movements by whales.”
This data confirms that the XRP Ledger is “experiencing one of its most active periods in 2025, with user engagement reaching a peak,” the analyst added.
Another chart from CryptoQuant showed consistently high values on the Spot Average Order Size metric for 30 consecutive days, indicating that whales remained increasingly active on the spot market during this period.
High velocity and increased whale activity simply translate to more users, reflecting adoption and interaction with the XRP token, positively impacting its price.
XRP balance on exchanges hits seven-year lows
There is a sharp decrease in the XRP supply on exchanges over the last 30 days, as evidenced by data from Glassnode.
XRP balance on exchanges dropped by 930 million tokens to 2.7 billion on Dec. 3 from 2.63 billion on Nov. 1, levels last seen in September 2018.
A reducing balance on exchanges suggests a lack of intention to sell by holders, reinforcing the upside potential for XRP.
The sharp decline coincided precisely with record exchange outflows, as the XRP net position change among exchanges fell by 1.4 million XRP, marking the largest spike in history, according to Glassnode data.
Such outflows typically indicate strong accumulation by large holders, who move tokens to cold storage or invest in investment products, thereby reducing immediate sell-side pressure.
XRP sits on strong support above $2.15
XRP’s latest recovery saw it reclaim a key support level at $2.15, which is also supported by the 50-period simple moving average (SMA).
Reclaiming this trendline has previously been preceded by significant recoveries in XRP price, as shown in the chart below.
Glassnode’s UTXO realized price distribution (URPD), which reveals the prices at which the current supply was created, indicates that $2.15 is the most significant support for XRP, where investors acquired 3.6 billion tokens.
As Cointelegraph reported, several other factors, such as persistent spot ETF inflows and a bullish divergence in the RSI on the price charts, indicate that an XRP rally is looking 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.
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. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
