On-Chain Indicators and Key Signals
On-chain data reveals mixed signals for XRP. While the exchange reserve on Binance is trending downwards, suggesting accumulation, the number of active addresses on the Ripple network has been consistently decreasing in 2025.
Indeed, the number of active addresses, measured by the 30-day moving average, has been steadily declining since January 2025. While this decline appears to have recently stabilized, it remains a bearish signal for long-term investors, reflecting a lacklustre network engagement.
Conversely, the reserves of XRP on Binance have been on a general downtrend since November 2024, an encouraging sign. Reduced reserves suggest that holders are transferring their XRP to cold wallets, indicating accumulation and reduced selling pressure.
However, unlike Bitcoin, which has seen a steady decline, the token has experienced sudden spikes, notably in March and May 2025. These rapid inflows have hindered attempts to rally towards $2.5 or $3, nullifying bullish gains in a ranging market.
Lastly, a positive indicator emerges from the three-month Spot Taker Cumulative Volume Delta (CVD). Since May 21, 2025, spot buying volumes dominate, signaling a return of interest from buyers. While this does not guarantee an immediate price increase, it is a point to monitor. Conversely, a dominant spot selling phase could push XRP below $2, a scenario supported by other on-chain data.
Forecasts and Outlook for XRP Price
An analysis of the 3-month liquidation heatmap shows a high concentration of liquidation levels near the psychological support of $2. This suggests that XRP could undergo a further 10% correction before finding a bounce.
However, if prices drop to $2 or even $1.95, these levels could provide better entry opportunities with a more favorable risk/reward ratio, especially if spot buying dominance persists.
The current situation of XRP highlights the challenges the cryptocurrency faces. Investors must carefully monitor on-chain indicators and liquidation levels to make informed decisions about their positions. Stay informed to seize emerging opportunities in the XRP market.
