Analysts Set $5 Price Target for XRP by the End of 2025

According to analysts, there's a possibility for XRP to reach $5 by the end of 2025. The token is currently trading near $2.41, down almost 2% in the past 24 hours. On-chain momentum, exchange supply trends, network activity, and regulatory developments all indicate strong growth potential.

Exchange Balances Reach Record Lows

Glassnode data, shared by market analyst Steph is Crypto, reveals that more than 216 million XRP, valued at around $556 million, were withdrawn from exchanges this week. This represents one of the largest declines in exchange supply in recent months.

Lower exchange balances typically indicate that holders are transferring tokens to long-term storage, reflecting confidence and reducing immediate selling pressure. On the other hand, deposits into exchanges often signal potential selling, which can temporarily weigh on prices. Still, analysts note that this pattern in exchange supply has been seen before past XRP rallies.

On-Chain Momentum Mirrors Previous Rally Setups

For the first time in months, XRP’s Cumulative Volume Delta (CVD), which tracks buy and sell pressure, has flipped bullish. Trader Onur highlighted that this resembles conditions seen before previous 75% price rallies.

Charts show a “cup-and-handle” setup, a pattern often associated with significant upside potential. Along with ETF rumors and steady on-chain accumulation, analysts see this as an important juncture forXRP and could help drive a push toward $5, particularly if institutional investment enters the market.

Network Activity Hits Three-Month High

CryptoQuant reports that XRP’s active addresses have climbed to their highest levels since August, signaling significant network activity in the last three months. Higher activity generally points to increased demand and liquidity, which can reinforce price strength.

Past trends indicate that growth in active addresses often comes before price gains. Analysts note that XRP’s network activity is mirroring these trends, creating conditions that may favor future increases.

XRP ETF Listings Spark Institutional Optimism

Market sentiment improved after 11 XRP ETF products were listed on the DTCC website, marking an important regulatory step toward potential approval. Analysts suggest this could speed up institutional involvement, especially once regulatory guidance is clear.

Investors interpret the DTCC listings as a sign that XRP ETFs may be approaching sooner than anticipated. If approvals follow, substantial institutional inflows could put upward pressure on prices.

Rising XRP Market Dominance and Supply Dynamics

XRP’s market dominance has been increasing even as Bitcoin’s influence declines, indicating that investors may be shifting toward XRP amid wider market uncertainty. According to JPMorgan research, up to $8 billion could flow into XRP ETFs in their first year of approval, while only 3 to 5 billion XRP are currently available on exchanges.

This limited supply, combined with growing demand, could create a “supply shock”, supporting positive sentiment for the token. Moreover, endorsements from major firms like BlackRock have strengthened XRP’s credibility, attracting attention from both retail and institutional investors.

Will XRP Reach $5 in 2025?

Although no forecast can be guaranteed, the combination of technical signals, regulatory progress, and supply-demand factors suggests a potential period of opportunity. If momentum continues, XRP could reach $5 or higher, with a reasonable chance of this occurring before 2026. Of course, some volatility is always possible, but the overall outlook remains positive.