XRP’s market outlook is turning bullish as the token reclaims key price levels. A combination of surging on-chain activity, persistent institutional demand, and a dwindling supply on exchanges suggests the foundation for a sustained price recovery is being built.

Network Activity Reaches 2025 Highs

A key indicator of growing momentum is the XRP Ledger’s velocity, which recently spiked to a yearly high of 0.0324. Velocity measures how frequently XRP circulates within its network, and a higher value points to increased use in transactions rather than passive holding. According to analysis from CryptoQuant, this surge signifies high liquidity and substantial involvement from traders and major token holders, often called whales.

The data confirms that the XRP Ledger is experiencing one of its most active periods in 2025, with user engagement at a peak. This trend is further supported by the spot average order size, which has remained consistently high for 30 consecutive days. This indicates that large-scale investors have been increasingly active, reflecting growing adoption and interaction with the XRP token.

Exchange Supply Dwindles to Seven-Year Low

Over the past month, the amount of XRP available on cryptocurrency exchanges has seen a sharp decline. Data from Glassnode shows the balance on exchanges dropped by 930 million tokens to 2.7 billion, a level not seen since September 2018. A shrinking supply on exchanges typically signals strong holding sentiment, as it reduces the readily available pool of tokens for sale.

This decline coincided with record-breaking exchange outflows, with a net position change of 1.4 million XRP leaving trading platforms. Such movements often indicate that large holders are accumulating tokens and moving them into cold storage or other long-term investment products, thereby easing immediate sell-side pressure.

Price Finds Solid Footing Above $2.15

XRP’s recent recovery has allowed it to establish a strong support level at $2.15, which aligns with the 50-period simple moving average (SMA). Historically, reclaiming this trendline has often preceded significant price increases for the asset.

The importance of this price point is reinforced by Glassnode’s UTXO Realized Price Distribution (URPD) data. This metric shows that investors acquired 3.6 billion XRP around the $2.15 mark, making it the most significant support zone. Combined with other factors like persistent spot ETF inflows, the evidence suggests that a rally for XRP is becoming increasingly likely.