XRP has struggled to maintain its upward momentum in recent weeks, with a nearly 10% drop over the past month. Currently, XRP is trading at around $2.96, amid mixed signals from the broader market.

While assets like Ethereum continue to appreciate, setting new highs, XRP consistently faces corrections, prompting investors to carefully monitor whether this trend can continue or stabilize in the near future.

An analyst from CryptoQuant noted that XRP's current price movement follows a bullish wave in early 2025, when the token reached a price of $3.5 to $4. This bullish trend is accompanied by a strong increase in exchange inflows, particularly from large investors, indicating significant profit-taking activity. The analyst suggested that this inflow activity could add pressure to the token's price, forcing investors to weigh both risks and potential opportunities ahead.

XRP Inflow Data on Exchanges Shows Profit-Taking Activity

The analyst, known by the alias PelinayPA, highlighted the importance of inflows into XRP on exchanges in a recent analysis. The analyst explained that history shows large inflow periods from significant holders often precede XRP's price cycle peaks.

Notable examples include the peak in 2018 above $3, the peak in 2021 near $1.90, and the bullish wave in 2023 to $0.90. According to the latest data, a similar trend has emerged. PelinayPA noted:

At the beginning of 2025, XRP surged to $3.5–4 with significant investment capital, especially at high price levels (from 100,000 to 1 million XRP or more). This indicates substantial selling pressure from shark investors. Currently, inflow amounts remain unusually high, suggesting short-term selling pressure.

The report outlined several scenarios depending on whether XRP can maintain support near $3.00. In the short term, inflows could continue to push prices up to the $2.8 area.

However, if the $3 support level is maintained, the analyst believes this level could serve as a foundation for a new bullish effort, with resistance from $4.2 to $4.5 being key to unlocking further profits.

In the long term, analysts emphasize that XRP has a stronger structural uptrend compared to previous market cycles, opening the possibility of reaching new highs above $5 by the end of 2025.

Technical Levels Indicate Points of Success or Failure

In addition to on-chain prospects, traders are also focusing on technical indicators. An analyst on X, posting under the title “XRP Update,” emphasized the importance of the $2.95 level, coinciding with the Fibonacci retracement of 0.618.

According to their analysis, maintaining prices above this level could pave the way to $3.33 and $3.57, while breaking through the $4.6–5.2 area would push XRP into a new price zone.

Conversely, failing to maintain support could open the door to a deeper downtrend, with $2.65 marked as the next key level. This aligns with the warning reflected in on-chain data, indicating that XRP is currently at a critical phase, where the next steps could determine its direction for the remainder of the year.

Register a Binance account to receive permanent trading fee rebates:

- New account registration link: https://accounts.binance.com/register?ref=Q2FSX523

- Referral code: Q2FSX523