In recent weeks, XRP has struggled to maintain its upward momentum, declining nearly 10% over the past month. As of the writing of this article, XRP is trading at approximately $2.96, with mixed market trends.
Despite assets like Ethereum continuing to rise to new highs, XRP is facing ongoing pullbacks, leading market participants to closely monitor whether this trend will continue or stabilize in the short term.
An analyst from CryptoQuant pointed out that the current price trend of Ripple (XRP) is occurring after a rebound in early 2025, when the token's price reached the range of $3.5 to $4. The surge at that time was accompanied by a spike in inflows to exchanges, particularly from large holders, indicating a substantial amount of profit-taking.
The analyst believes that this inflow activity could exert new pressure on the token's price, prompting investors to weigh future risks and potential opportunities.
XRP's exchange inflow data indicates profit-taking.
The analyst named PelinayPA emphasized the importance of inflows into XRP from exchanges in a recent analysis. He explained that historically, significant inflows from major holders often precede XRP prices reaching cycle peaks.
Notable examples include the peak that broke $3 in 2018, the near $1.90 high in 2021, and the rise to $0.90 in 2023. According to the latest data, a similar trend has emerged. PelinayPA noted:
In early 2025, XRP's price rose to $3.5-$4, accompanied by massive inflows, especially in the high-value range (100,000-1,000,000+ XRP). This indicates significant selling pressure from whales. Currently, the inflow remains abnormally high, suggesting selling pressure in the short term.
The report outlines multiple scenarios depending on whether XRP can hold the support level around $3.00. In the short term, sustained inflows may push the price down towards the $2.8 area.
However, if the $3 threshold remains intact, the analyst believes it could serve as a foundation for a new round of upward movement, with resistance between $4.2 and $4.5 being key for further increases.
The analyst emphasized that, in the long run, compared to earlier market cycles, XRP is still in a stronger structural uptrend, leaving the possibility of setting new highs above $5 in late 2025.
Technical levels indicate a moment of success or failure.
In addition to the on-chain outlook, traders are also focusing on technical indicators. An analyst named 'XRP Update' posted about XRP, highlighting the importance of the $2.95 level, which aligns with the 0.618 Fibonacci retracement level.
In their analysis, staying above this level could create a path towards $3.33 and $3.57, while breaking through the $4.6 to $5.2 range would place XRP into a new price discovery area.
$XRP is at a critical juncture ⚡️
– The price is at $2.95 (Fibonacci 0.618) key support level. 💪🏼
– Staying above → Path to $3.33 → $3.57, then focus on $4.6-$5.2 💥🚀
– Losing it → Risk down to $2.65 📉
The next step will determine the trend‼️ pic.twitter.com/iYa94DyiRA
— XRP Update (@XrpUdate) August 25, 2025
On the other hand, failure to hold the support level could open the door for further declines, with $2.65 marked as the next key level. This aligns with the cautious sentiment expressed by on-chain data, indicating that XRP is currently at a critical stage, where the next movement could determine its trend for the remainder of the year.
