In recent weeks, XRP has recorded impressive price gains, exceeding 12% within a month and reclaiming many important price levels. However, in the latest trading session, the asset is showing signs of correction. At the time of writing, XRP is trading at $3.17, down 1.2% in the last 24 hours compared to a recent peak of about $3.22.

Bullish Momentum: The Historic Lawsuit with the SEC Has Ended

On August 7, 2025, the years-long lawsuit between the U.S. Securities and Exchange Commission (SEC) and Ripple and its executives officially concluded. This event removed one of the biggest legal risks for XRP, immediately triggering a strong price increase. However, on-chain data suggests that this surge may primarily stem from the capital movement of current investors rather than new cash flow from the market.

Network Activity Decreases Despite Price Increase

According to CryptoOnchain analyst from CryptoQuant, the number of daily active addresses on the XRP Ledger has decreased by over 10%, down to about 24,701 after the lawsuit ended. This shows that the price increase is largely supported by internal revolving capital, rather than a wave of new users joining. The lack of new cash flow from retail investors could make it difficult to sustain the upward momentum in the long term without additional new demand.

Exchange Cash Flow Data: Various Motivations

The number of addresses depositing XRP into Binance and Upbit surged right before and after the announcement of the lawsuit's conclusion. Historically, these spikes in deposit flows often signal profit-taking or short-term trading activities.

However, data also shows that XRP withdrawals from exchanges also increased at the same time, reflecting that there are still new investors building long-term positions. This creates a mixed picture: both short-term speculative activity and long-term accumulation are occurring.

Centralized Liquidity and the Role of the Asian Market

Exchange reserve data shows a distinctly changing trend:

  • Binance: XRP reserves are increasing again after a period of decline.

  • Upbit: Continuing the steady upward trend in reserves, reflecting the growing role of the Asian market in XRP trading.

  • OKX: Almost no longer holding XRP due to strong withdrawals from the exchange.

CryptoOnchain notes that the price increase alongside a decrease in active users reflects that the market is being dominated by a small group of large traders. If exchange reserves continue to grow rapidly, the risk of a short-term correction will be higher, especially if profit-taking activity increases.

Outlook

The conclusion of the lawsuit with the SEC has removed a major barrier for XRP. However, to maintain sustainable upward momentum, XRP needs to attract more new investors and reduce short-term selling pressure from long-term holders.