Ripple has made acquisitions worth $4 billion in 2025, and its five-year lawsuit with the Securities and Exchange Commission (SEC) has officially ended. Despite these positive developments, Ripple’s native token, XRP, is currently underperforming, trading 33% below its all-time high of $3.84. However, the market is now setting its sights on a potential surge to $5.
### XRP’s Current Market Position
XRP is presently ranked as the fourth-largest cryptocurrency with a market capitalization of approximately $146 billion. The token is trading at $2.43, reflecting a 9.37% increase over the past week, although it has experienced a slight dip in the last 24 hours. Various indicators suggest potential for further gains, with projections placing XRP near the $5 mark—representing an impressive 108% increase from today’s price.
According to analyst Ali Martinez, should the ongoing bull run persist, XRP could be an attractive buy at $1.90, ahead of a potential rally toward $6.10.
### 1. Low Exchange Balances Signal Growing Confidence
Steph is Crypto reported that 216 million XRP, worth roughly $556 million, were withdrawn from exchanges this week, signaling a return of confidence in the token. When significant volumes of cryptocurrency move from exchange custody to self-custody or long-term holdings, the supply available for immediate sale decreases. This withdrawal of liquidity often creates upward price pressure as demand rises, acting as a bullish market indicator.
### 2. On-Chain Momentum Points Upward
Trader Onur highlighted that XRP’s Cumulative Volume Delta (CVD) — a key on-chain metric tracking buy versus sell pressure — recently flipped bullish for the first time in months. This signals that buying activity is beginning to dominate selling pressure, suggesting strong upward momentum.
Onur added, “A textbook cup-and-handle setup is forming, with a clean technical breakout pointing toward $5.” This bullish pattern, combined with renewed ETF buzz, supports this optimistic outlook. Historically, when the spot taker CVD flipped bullish, XRP rallied by 75% within weeks. The cup-and-handle formation, widely regarded by traders as a reliable bullish signal, typically indicates a period of consolidation followed by a strong breakout.
### 3. Increased Network Activity
Data from CryptoQuant shows active XRP addresses have reached their highest level since August, marking a three-month high. Last week alone, 21,595 new wallets were created on the XRP Ledger—the fastest two-day surge in user growth since March 2025 and the strongest momentum seen in eight months.
In a previous analysis, CNF noted that the XRP Ledger’s real-world asset (RWA) market cap jumped to a record $364 million in Q3 2025. During this period, new addresses surged 46.3% to 447,200, while the total number of addresses grew 6.1% to 6.9 million.
### 4. XRP ETF Approval on the Horizon
Perhaps one of the most significant catalysts for XRP is the pending approval of exchange-traded funds (ETFs). The strong expectation of regulatory approval from the SEC is fueling optimism. As of this week, the Depository Trust & Clearing Corporation (DTCC) lists 11 XRP ETF products in its active and pre-launch categories.
These ETFs come from major institutional issuers such as 21Shares, ProShares, Bitwise, Canary Capital, CoinShares, and Franklin Templeton. Approval would open the door for capital inflows from investors who previously had limited exposure to XRP. When combined with constrained supply, this demand influx could create a strong supply-demand imbalance favorable for higher prices.
### 5. XRP’s Growing Market Dominance
While Bitcoin remains the largest cryptocurrency with 59.3% dominance of the $3.52 trillion market cap, its dominance has been gradually fading. Capital is increasingly rotating into altcoins, with XRP well-positioned to benefit as a hedge during broader market uncertainty.
Based on JPMorgan research, a user emphasized that XRP ETFs could attract up to $8 billion in inflows during their first year—a development that could profoundly alter market dynamics. With exchange balances ranging between 3-5 billion XRP, such institutional participation could lead to an acute supply shock.
“Depending on how quickly capital enters, XRP could realistically reach $20 to $100+, as limited supply meets strong institutional demand,” the user explained.
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