XRP’s price has seen an increase of 12% since it dropped below $2 on November 21, effectively reclaiming critical support levels. Enhanced network activity and ongoing institutional interest, along with lower supply on exchanges, could pave the way for a robust price recovery.

Key Highlights:

• A notable rise in XRP ledger activity and whale movements indicates increased demand.
• The diminishing supply of XRP on exchanges points towards strong accumulation among holders.
• Bulls are aiming to solidify support at $2.15 as a launchpad for the next upward movement.

XRP Ledger Activity Reaches New Heights

The XRP ledger’s velocity has experienced a significant uptick, recently hitting a yearly high of 0.0324 as reported by CryptoQuant.

Velocity measures how frequently XRP circulates within the ledger over time.

Related: XRP Faces ‘Now or Never’ Moment as Traders Eye Rally to $2.50

High velocity implies XRP is being actively utilized in economic activities and transactions rather than merely held, according to a Wednesday analysis from CryptoQuant:

“Such a surge typically signifies high liquidity and substantial involvement from traders or significant movements by whales.”

This trend confirms that the XRP Ledger is witnessing one of its busiest periods in 2025, with user engagement at a peak.

XRP/Ledger velocity. Source: CryptoQuant

A separate analysis indicated consistently elevated average order sizes on the market over the last month, highlighting increased whale activity.

XRP Ledger spot average order size. Source: CryptoQuant

This growing velocity and whale involvement suggest more users are engaging with XRP, which is beneficial for its price.

XRP Supply on Exchanges at Lowest in Seven Years

In the past month, XRP’s supply on exchanges has sharply declined, as per Glassnode data. The supply reduced by 930 million tokens, bringing the balance down to 2.7 billion from 2.63 billion, marking the lowest level since September 2018.

XRP reserve on exchanges. Source: Glassnode

This drop suggests holders are not looking to sell, which reinforces bullish sentiment for XRP. This decline aligns with record exchange outflows, with net positions decreasing by 1.4 million XRP, the largest change ever recorded according to Glassnode data.

XRP: Exchange net position change. Source: Glassnode

Such outflows reflect a strong accumulation trend among key investors who shift tokens to cold storage or into longer-term investments, reducing sell pressure in the near term.

Strong Support Established Above $2.15

XRP’s recent price resurgence has restored its support level at $2.15, bolstered by the 50-period simple moving average (SMA). Historically, reclaiming this trendline has led to substantial price recoveries for XRP.

XRP/USD four-hour chart. Source: Cointelegraph

Glassnode’s UTXO realized price distribution analysis indicates that $2.15 is a critical support point where 3.6 billion tokens were purchased by investors.

XRP: UTXO realized price distribution. Source: Glassnode

In addition, ongoing spot ETF inflows and signs of bullish divergence in the RSI suggest that a rally for XRP is becoming increasingly probable.

Disclaimer: This article does not serve as investment advice or recommendations. All investments carry risks, and readers are encouraged to conduct independent research.