- XRP price increased by 12% after falling below $2 on November 21, reaching key support levels.
- XRP ledger velocity hit a yearly high on December 3, indicating increased token circulation.
- Whale activity on the XRP spot market has been consistently high for 30 days.
- Exchange reserves of XRP fell to seven-year lows, signaling strong accumulation by holders.
- XRP found significant support around $2.15, aligned with technical indicators and realized price distribution data.
The price of XRP has risen by 12% since dropping below $2 on November 21, regaining important support levels. Increased network transactions and ongoing institutional demand, along with a decline in XRP supply on exchanges, are factors contributing to a potential sustained price recovery.
Data from CryptoQuant reveals that the XRP ledger velocity surged to a yearly peak of 0.0324 on December 3. Ledger velocity measures how frequently XRP tokens circulate within the network during a specific period. According to an analyst from CryptoQuant, this rise indicates heightened economic activity and significant movements by whales, signaling high liquidity.
Along with increased velocity, the spot average order size for XRP has remained elevated for 30 consecutive days, confirming stronger whale participation in the spot market. This combination reflects broader user adoption and engagement with the XRP token, positively influencing its price.
On the supply side, Glassnode data shows that XRP balances on exchanges dropped sharply to 2.7 billion tokens on December 3 from 3.63 billion a month earlier, marking the lowest level since September 2018. The net position change of XRP on exchanges also recorded a historic outflow of 1.4 million tokens. Exchange outflows typically suggest that large holders are moving assets to cold storage or investment vehicles, reducing immediate selling pressure.
Technically, XRP has reclaimed a critical support level near $2.15, supported by the 50-period simple moving average (SMA). Historical price data suggest that maintaining this support has preceded strong recoveries before. The realized price distribution from UTXO data indicates that investors acquired approximately 3.6 billion XRP tokens around this price, reinforcing it as a strong support zone.
Additional factors, including inflows into spot exchange-traded funds and bullish signals in relative strength indicators, align with the current positive momentum of XRP.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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