Since the lawsuit between Ripple and the SEC began, many believed it was the end for XRP. The price of this token plummeted from an all-time high to just $0.10, causing the community to doubt its recovery potential. However, the current reality has proven otherwise.

In the past week, XRP has recorded an impressive increase of 25%, currently trading around $2.57, and ranking third in the leaderboard of top cryptocurrencies. What is behind this remarkable "resurgence"?

1. Record Increase in XRP Wallets

One of the strongest on-chain signals reflecting renewed interest in XRP is the remarkable growth in the number of active wallets.

  • The total number of XRP wallets with current balances has nearly reached 6.5 million, the highest in the 12-year history of the network.

  • In just the first few months of 2025, over 638,000 new wallets have been created, an increase of over 11%, indicating that both individual and institutional investors are re-engaging with the XRP ecosystem.

2. XRP Supported by Huge Investment Funds

A new report from WisdomTree – an asset management company with a total value of over $100 billion – has specifically named XRP as the only altcoin suitable to accompany Bitcoin in a crypto investment portfolio.

This is a significant boost in confidence for XRP from the traditional finance sector, which is very selective in choosing digital assets for capital allocation.

3. Increased Trading Activity on Binance

Data from the derivatives market on Binance shows:

  • XRP's Open Interest (OI) – total open contracts – after a sharp decline from a peak of $1.5 billion to $530 million, is now beginning to rise again.

  • According to analyst FundingVest from Cryptoquant, short-sellers are increasing selling pressure, but buyers are still firmly absorbing. This is a sign that XRP may be preparing for a strong breakout.

Additionally, the funding rate has now returned to neutral levels, but on-chain data indicates that short-selling pressure is gradually building, while prices remain stable – often a sign of an upcoming "breakout".

4. Data from Coinglass: Bulls Still Hold the Upper Hand

According to data from Coinglass:

  • In the recent liquidation event, XRP recorded a total liquidation value of $6.86 million, including:

    • $3.59 million from long positions.

    • $3.27 million from short positions.

However, the price of XRP remains steady, indicating that buyers are still in control despite short-term fluctuations.

5. Can XRP Reach $5 or Even $6?

Renowned technical analyst MackAttackXRP has detected a bullish pennant pattern on XRP's weekly chart.

  • If this pattern is confirmed and the price breaks out upwards, XRP could reach $3.40, then move towards $3.60 in the short term.

  • In the event that the upward momentum continues with strong trading volume, targets of $5.00 to $6.00 are entirely feasible.

Conclusion

With a combination of positive technical factors, strong on-chain data, support from major financial institutions, and active trading, XRP is demonstrating a remarkable return to strength.

Currently, XRP is trading around $2.57, up 4% in the past 24 hours. If this trend continues, the $3 mark could be conquered as soon as this week.

Warning: This article is for informational purposes only and is not investment advice. Always do thorough research and consider risks before making any financial decisions.