- Despite an 18.41% monthly drop and a sharp decline in on-chain and derivatives activity, XRP has avoided a full breakdown and continues to show relative price stability compared to peers like Ethereum.
- XRP exchange reserves have fallen to their lowest since July 2023, reducing sell pressure. Meanwhile, bullish Ichimoku Cloud patterns and consistent buying support between $2.03–$2.06 suggest accumulation and strong underlying support.
- With favorable technical indicators, including a bullish crossover and steady volume analysts believe XRP could rally by over 115% if it maintains its current support levels.
Despite a severe drop in both on-chain and Derivatives activity, XRP has managed to hold its price when investors’ sentiment is shaky. XRP reached this price high at the beginning of 2025; after that, it is currently trading at $2.09 with a loss of 18.41% over the last month. However, the digital asset has not experienced a complete breakdown, restoring market momentum and rubbing trader engagement.
CryptoQuant contributor EgyHash noted that activity on the XRP Ledger is sharply dropping. Over the past couple of months, active wallet addresses have cratered by nearly 80%, reflecting a sharp deflation of user participation. Reducing the number of purchases does not reflect in the derivatives market, where the XRP futures open interest has fallen roughly 70% from previous peaks.
Additional indicators give it a cautious tone. Often, the funding rates have become negative, indicating a growing number of traders taking a defensive stance. This is also supported by our measure of Estimated Leverage Ratio, which has also come down rather dramatically, indicating more cautiousness in the market.
However, XRP’s price is relatively stable when compared to other cryptocurrencies. Unlike Ethereum, which has fallen almost 60% from its recent high, XRP has lost around 35%, indicating a calmer drop. Although speculative interest in XRP has declined due to this downturn, this disparity shows that XRP is still being supported by an underlying structural support that helps save it from worse losses.
XRP Exchange Reserves Hit Lowest Point Since 2023
Exchange reserves have further confirmed XRP’s safety, reaching all-time lows since July 2023. That decrease would mean a lower supply of tokens for quick sale, which contributes to additional price support in times of market weakness. According to EgyHash, that trend, together with somewhat stable pricing, points to deeper confidence in XRP’s long-term prospects.
While many metrics lean bearish, technical signals continue to show promise. Market analyst Dr. Cat recently pointed to a bullish setup on the weekly chart. According to him, XRP remains above the Kijun Sen line at $2.07 within the Ichimoku Cloud formation, a sign of a firm support base.
A bullish crossover pattern of interest: Tenkan Sen is above the Kijun Sen, an indicator that short-term buying momentum is still intact. Finally, the Chikou Span even hung above prices 26 weeks ago, which historically has been a bullish indicator. The projected Ichimoku Cloud, looking forward, displays a strong upward insurgency up until May and thus suggests that the trend is by no means weakening.
Bullish Outlook Eyes Potential XRP Surge to $4.50
In consolidation phases, volume has held steady, and candles have always had very strong ‘ buyer presence ‘ between $2.03 and $2.06. Dr. Cat interprets this as accumulation, and it’s a very early signal that market participants are beginning to position themselves for a possible breakout.
XRP remains technically stronger, but like other major altcoins, particularly Ethereum, the tide is turning, and people are moving away from supplying liquidity. Dr. Cat said the coin is still primed for a strong bull run.
“$XRP bulls still have full control,” he asserted.
If the asset can hang on to the current support price hurdles and keep the bullish Ichimoku pattern, XRP can rise to around $4.50, a 115.31% increase from the current rate. XRP’s ability to resist the bearish currents sweeping across markets may soon be laying the table for a breakout.
