Key Takeaways:
- Exchange withdrawals and bullish on-chain metrics point to rising investor confidence.
- XRP ETF approval could trigger billions in inflows.
- Network growth and capital rotation favor XRP’s mid- to long-term upside.
XRP’s Path to $5: Key Catalysts Driving the 2025 Bull Case
Ripple’s XRP is back in the spotlight as renewed investor optimism fuels bold price forecasts. After closing its five-year SEC lawsuit and completing $4 billion in acquisitions, Ripple’s native token is trading at $2.43, marking a 9.37% weekly gain. Despite still being 33% below its all-time high of $3.84, analysts now eye $5 as the next major target — a potential 108% increase from current levels.
Crypto analyst Ali Martinez even suggests that XRP could be a strong buy around $1.90, anticipating a surge toward $6 if the bull run extends. Here are the top five catalysts that could drive that move.
1. Low Exchange Balances Signal Confidence
Crypto tracking data reveals that over 216 million XRP, worth about $556 million, was pulled off exchanges this week. Such large withdrawals reduce the circulating supply available for trading, often creating upward price pressure. Investors moving tokens into long-term custody typically signals growing confidence in the asset’s long-term prospects — a bullish foundation for XRP.
2. On-Chain Momentum Turns Bullish
Analyst Trader Onur notes that XRP’s Cumulative Volume Delta (CVD) — a key measure of buy vs. sell activity — has flipped bullish for the first time in months. This shift coincides with a cup-and-handle breakout pattern, a classic bullish technical formation. Historically, similar setups have led to rapid 70%+ rallies, suggesting XRP may be gearing up for another leg higher.
3. Network Growth and Adoption
According to CryptoQuant, XRP’s active addresses just hit a three-month high, with 21,595 new wallets created in one week — the fastest expansion since March. Meanwhile, XRPL’s real-world asset (RWA) market cap jumped to $364 million in Q3 2025, highlighting growing utility and user engagement across the network.
Also Read: Solana Surges as XRP Faces Slow Network Growth
4. XRP ETF Anticipation
The Depository Trust & Clearing Corporation (DTCC) recently listed 11 XRP ETF products in its pre-launch pipeline, including issuers like 21Shares, ProShares, and Franklin Templeton. SEC approval could unlock billions in institutional capital, transforming XRP’s liquidity profile and accelerating its path toward $5 — or even higher.
Also Read: XRP ETF Approval Next? Why Washington’s Latest Move Might Spark a Crypto Surge
5. Capital Rotation into Altcoins
Bitcoin’s 59.3% market dominance is slipping as investors diversify into high-potential altcoins. XRP, with its strong fundamentals and ETF buzz, is emerging as a prime beneficiary. JPMorgan estimates XRP ETFs could attract up to $8 billion in first-year inflows, potentially creating a supply shock that could send prices soaring to $20–$100 in the long term.
The Bottom Line
With shrinking exchange supply, bullish technicals, surging network activity, and potential ETF approval, XRP is aligning multiple bullish catalysts. If momentum holds, XRP’s march toward $5 in Q4 2025 could mark just the beginning of its next major growth phase.
