XRP’s (XRP-USD) price is showing renewed promise, having jumped 12% since falling below the $2 mark in late November. The altcoin is reclaiming key support levels, supported by a perfect storm of onchain factors: surging network activity, persistent institutional demand, and a dramatic reduction in supply on exchanges.
TipRanks Cyber Monday Sale
- Claim 60% off TipRanks Premium for data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
This momentum suggests the macro outlook for XRP remains bullish. Bulls are now focused on establishing strong support above $2.15 for the next leg up, a level that analysts believe is key for a sustained price recovery.
Network Velocity Hits 2025 Highs
The XRP Ledger’s velocity has seen a sudden spike, rising to a yearly high of $0.0324 on December 3. Velocity measures how frequently XRP is circulated across its ledger, and high velocity signals that the token is being actively used in “economic activity and on-chain transactions” rather than just being held.
Analysts state that such a surge typically signifies high liquidity and substantial involvement from traders or major movements by whales. This activity is confirmed by data showing that the Spot Average Order Size metric has been consistently high for 30 consecutive days, indicating whales have been increasingly active on the spot market. High velocity and increased whale activity translate directly to more users and adoption, positively impacting the token’s price.
Exchange Supply Plunges To Seven-Year Lows
Supporting the demand surge is a sharp decrease in the XRP supply held on exchanges over the last 30 days. The XRP balance on exchanges dropped by 930 million tokens to 2.7 billion on December 3, a level last seen in September 2018.
This reducing balance suggests that holders lack the intention to sell, reinforcing the upside potential for XRP. The sharp decline coincides precisely with record exchange outflows, which indicates strong accumulation by large holders who move tokens to cold storage. This behavior drastically reduces immediate sell-side pressure on the price.
Key Support Level Established at $2.15
XRP’s latest price recovery has seen it successfully reclaim a key support level at $2.15, which is also backed by the 50-period simple moving average (SMA). Reclaiming this trendline has previously preceded significant price recoveries for XRP.
Furthermore, data from Glassnode shows that $2.15 is the most significant support for XRP because it is the price point where investors acquired a massive 3.6 billion tokens. Several other factors, including persistent spot ETF inflows and a bullish divergence in the RSI, also suggest that a new rally is looking increasingly likely for the asset.
At the time of writing, XRP is sitting at $2.1444.
