XRP has made a surprising comeback. After years in the shadow, it has once again climbed to third place among cryptocurrencies by market capitalization, overtaking stablecoin Tether (USDT). And it’s happening just as whale outflows slow down and long-dormant wallets begin to reactivate. Is this the beginning of a new bullish cycle?

📊 XRP Overtakes Tether – First Time Since 2021

Ripple’s native token has seen a major reversal. XRP reached $2.49, briefly spiking to $2.60, and has now reclaimed the #3 position in the crypto rankings — a spot it last held in early 2021.

Source: CoinMarketCap

This surge isn’t just luck. Several fundamental catalysts are behind the move — including promising legislative developments in the U.S..

🏛️ Tax Relief and Real-World Use Add Credibility

In the U.S. state of Missouri, lawmakers are considering House Bill 594, which could introduce tax deductions for crypto gains — including XRP. If passed, Missouri would be the first state to offer such a benefit.

Meanwhile, XRP holders are growing: more than 11% increase in 2025 alone.

And real-world adoption is expanding — for example, Travala recently added XRP as a payment method.

🐋 Whale Activity Suggests a Market Shift

On-chain data shows that whale selling pressure has significantly eased.

📉 Although overall net flows remain negative, the downtrend is flattening, especially compared to the first few months of the year.

📊 The 30-day moving average of whale activity is trending upward. Historically, this pattern often precedes a stabilization phase followed by bullish movement.

Recent red bars are shrinking, approaching neutral territory — a potential sign of early accumulation.

Source: Cryptoquant

🔁 Why This Slowdown Matters

Since early 2023, XRP has suffered from persistent capital outflows by large investors, dragging down both price and market sentiment.

Now, however, the flows are leveling out, and early signs of strength are emerging on the charts.

Historically, when whale flows begin to turn positive, it's often a precursor to price recovery.

In summer 2023, a similar trend led to multi-week price surges.

🟢 What to Watch Next

🔸 If the 30-day net flow turns positive for the first time since late 2024, it would be a key psychological shift.

🔸 The reactivation of dormant large wallets would confirm a return of confidence.

🔸 Technically, XRP needs to sustain a breakout above $2.60 with high trading volume.

🔸 A rise in liquidity and order book depth would further support bullish momentum.

📌 Summary

XRP is reclaiming its position among crypto’s top contenders. With its return to the top 3, renewed investor interest, and easing outflows, it may be on the verge of transitioning from volatility to a full-scale recovery.

The next test? Whether XRP can maintain momentum and break through key technical barriers.

#xrp , #Ripple , #altcoins , #CryptoNewss , #cryptocurrencies

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