XRP 2025 Starts With A Bang, Will The Rally Continue?
As 2025 begins, Ripple Labs' native XRP has started on a strong note with impressive performance. However, some question whether this performance was driven by higher price action or a shift in market sentiment. In this article, we'll examine the factors behind XRP's recent rally and determine whether this is an opportune time to invest in the token.
Why is XRP running?
Data from on-chain analytics firm CryptoQuant has revealed a significant drop in XRP exchanges. What does this mean? It indicates that whales and long-term holders have withdrawn XRP tokens from the exchange before the rally begins, indicating that there is a large stockpile of XRP.
According to data from CryptoQuant, whales have withdrawn 20 million XRP tokens from Binance, reducing the exchange's reserves from 2.94 billion to 2.92 billion in the last seven days. Additionally, the exchange saw a massive influx of 519.82 million XRP tokens. This shows the amount accumulated by long-term holders over the same period.
These on-chain metrics explain other factors behind XRP's recent rally. However, this data is only for Binance, which hosts the most crypto users compared to other exchanges. Beyond centralized exchanges, volume on decentralized exchanges (DEXs) seems to be steadily increasing, which is a positive sign for XRP holders.
XRP current price and future level
Currently, XRP is trading around $2.40 with a price increase of over 4.65% in the last 24 hours. During this period, the volume of transactions increased by 35% due to the popular inflation and increased participation of traders and investors.
According to expert technical analysis, XRP looks bullish after breaking out of the flag-and-pole price action pattern, although it is currently testing a breakout level. Based on recent price action and historical momentum, if XRP holds support above the $2.30 mark, it could rally by 80% to reach the $4.40 level in the future.
A combination of on-chain metrics, growing DX volumes and strong technical patterns position XRP as a promising investment for 2025. However, investors should be cautious and watch for key support levels, especially around $2.30.
