XRP Price Predictions: XRP Faces Challenges Despite Increased On-Chain Activity

XRP declined, targeting its lowest level on Monday amid mixed signals from technical indicators.
The XRP Ledger is recording a sharp increase in on-chain economic activity and transactions.
Institutional demand for XRP exchange-traded funds remains steady as positive inflows continue to expand for a 13th consecutive day.

Ripple’s (XRP) is trading under pressure at the time of writing on Thursday, after bulls failed to break through the short-term resistance level at $2.22. The reversal could extend towards Monday’s low of $1.98, especially if the risk-off sentiment in the broader cryptocurrency market continues.

XRP Ledger Records Highest On-Chain Activity in 2025

The XRP Ledger (XRPL) Velocity indicator shows that the blockchain has seen a significant spike in on-chain activity, with the indicator reaching an annual high of 0.0324 on Tuesday.

According to CryptoQuant data, the Velocity metric, which tracks the frequency of asset movement across the network, has seen a sharp increase in economic activity and on-chain transactions.

“This level of trading velocity indicates that instead of remaining idle in cold wallets or being held long-term (HODL), XRP tokens are quickly changing hands among market participants,” stated CryptoOnchain analyst in the Quicktake section on CryptoQuant.

On-chain XRPL data shows the network is experiencing a substantial increase in user participation, regardless of market direction.

XRP Ledger Velocity Metric Chart | Source: CryptoQuant

The XRP derivatives market has also seen a slight uptick in retail demand, with average open interest (OI) for futures contracts reaching $3.85 billion on Thursday, up from $3.75 billion the previous day. The average open interest, which measures the notional value of outstanding futures contracts, had dropped to $3.19 billion on November 22, its lowest since April 22.

XRP Open Interest Chart | Source: CoinGlass

Institutional interest in XRP exchange-traded funds (ETFs) has also remained steady since their debut on November 13. SoSoValue data shows that US-listed XRP (ETFs) recorded inflows of nearly $50 million on Wednesday, bringing total inflows to $874 million and net assets to $906 million.

Steady ETF inflows are supporting positive sentiment, encouraging investors to increase exposure and anticipate a sustained upward trend.

XRP ETF Flows Chart.