As the broader crypto market moves sideways, XRP is quietly gaining bullish momentum, positioning itself as a potential surprise winner in Q2 2025. Currently trading at $2.14, just 2.8% below the critical $2.20 level, XRP is drawing significant attention from traders. Liquidation heatmaps indicate concentrated interest around $2.20, suggesting a high likelihood of stop orders triggering and new positions opening. This liquidity cluster acts as a magnet for price action, hinting at a possible rally. Despite the decline in Network Realized P, the overall sentiment remains optimistic. With these developments, XRP could be poised for a breakout, making it a cryptocurrency to watch closely in the coming weeks.
Why XRP Could Be the Surprise Winner of Q2
XRP is quietly building bullish momentum as the broader crypto market drifts sideways. Traders are eyeing a potential rally, with liquidity clusters around $2.20 acting as a magnet for price action. At press time, XRP trades at $2.14, just 2.8% below this critical level.
Liquidation heatmaps reveal concentrated interest at $2.20, suggesting a high probability of stop orders triggering and new positions opening. The decline in Network Realized Profit/Loss (NPL) further supports the bullish case, with a 30-day moving average now at 70.27 million—down 11% over the past week.
When NPL dips into negative territory, it signals that more holders are moving coins at a loss, often preceding a rebound. XRP’s technical and on-chain metrics align for a potential breakout, making it a dark horse for Q2 performance.
XRP's Daily RSI Trendline Breakdown Signals Potential Price Volatility
XRP's Relative Strength Index (RSI) has broken beneath a critical trendline that had been tracking higher lows since early April, according to an analysis by crypto chartist CasiTrades. This breakdown suggests a weakening of short-term momentum, despite the token's price holding above the key $2.13 Fibonacci level.
The RSI's tightening wedge pattern, mirroring the price action's symmetrical triangle compression, often precedes volatility expansions. Analysts warn this could lead to a sharp sweep of major support levels before any reversal. Market participants are watching closely for signs of whether this technical breakdown will translate into a broader bearish trend.
XRP Network Activity Plummets Amid Market Correction
XRP faces mounting bearish pressure as on-chain metrics reveal a dramatic decline in network activity. Daily new addresses on the XRP Ledger have collapsed 80% since January 2025, plummeting from 30,000 to fewer than 5,000. This erosion of user growth correlates strongly with XRP's 10% price decline to $2.13 during the recent crypto market downturn.
Glassnode data illustrates a telling pattern: the late 2024 surge in wallet creation coincided with XRP's rally to $2.71, while the subsequent slowdown precipitated the current downward trend. Analysts now question the feasibility of XRP's $3 price target given these network fundamentals.
The divergence between optimistic market sentiment and deteriorating on-chain health presents a critical challenge for XRP's recovery. As Coin Bureau's analysis suggests, without renewed network growth, the altcoin may struggle to regain its bullish momentum.
XRP Ledger Hits Deflationary Milestone with 14 Million Tokens Burned Amid Surging Activity
The XRP Ledger has incinerated over 14 million XRP tokens through its transaction-based burn mechanism, reaching a record 14,003,265 XRP destroyed according to blockchain tracker XRPScan. This deflationary feature, designed to combat spam and gradually reduce supply, coincides with unprecedented network usage.
Daily active addresses have skyrocketed to 295,000 from just 35,000-40,000 months prior, while wallets holding 1+ million XRP breached 2,700 for the first time in the ledger's 12-year history. Santiment data confirms this parabolic growth in fundamental usage.
Despite bullish on-chain signals, XRP faces volatility at $2.13 - a 300% surge from pre-November 2024 levels. Glassnode warns of profit-taking at $68.8 million daily, testing the critical $2 support. A hold above the 50-day SMA at $2.27 could stabilize prices, while $2.65 may trigger renewed bullish momentum.
XRP On-Chain Activity Plummets 80% in Five Months Amid Divergent Analyst Views
XRP's network growth has stalled dramatically, with new wallet creations collapsing by 80% since January 2025. Glassnode data reveals daily address generation dwindling from 30,000 at November 2024's peak to barely 2,000-5,000 by mid-June 2025, paralleling the token's failure to sustain its near-$3 rally.
Daily active addresses tell a similar story—plunging 94% from 577,000 to 34,000. The Coin Bureau analyst interprets this as signaling dim prospects for revisiting $3, while contrarians argue the metrics overlook institutional accumulation during low-retail-participation phases.
Price action reflects the uncertainty, with XRP oscillating around $2 as bulls and bears clash over whether the on-chain drought precedes a renaissance or prolonged stagnation. Market watchers note the divergence mirrors 2021's consolidation before XRP's last major breakout.
XRP Builds Pressure Below $3 As RSI Breakdown Signals Imminent Move
XRP prices have declined by 1.26% over the past week, struggling alongside a broader crypto market attempting to regain bullish momentum. The asset peaked at $2.58 on May 15 before correcting to around $2.06, signaling heightened volatility.
Analyst CasiTrades highlights a critical technical inflection point for XRP, noting a descending triangle pattern and a breakdown in the Relative Strength Index (RSI). This convergence suggests accumulating market pressure, with muted price action likely preceding a decisive move.
The anticipated breakout may first test lower support levels before reversing upward. Market participants are watching for confirmation of this flush-and-fly scenario, which could reignite bullish sentiment for the sixth-largest cryptocurrency.
