Why Analysts See A $5 Target for XRP Price in Q4 2025
Analysts are optimistic about Ripple's XRP token potentially reaching $5 in Q4 2025 from its current price of $2.40. Key factors include record-low exchange supply, bullish on-chain momentum, a three-month high in network activity, upcoming XRP ETF listings, and growing market dominance. Notable developments such as ETF optimism, tight exchange reserves, and institutional interest could trigger a supply shock and drive a significant price rally. However, investors are advised to conduct their own research.
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Renewed Optimism Surrounding XRP
Several key metrics, including exchange supply, on-chain momentum, network activity, and regulatory breakthroughs, are painting a positive outlook for the Ripple token (XRP). This has triggered renewed optimism across the XRP community. As supply dries up and technical momentum builds, analysts note that current trends resemble the start of multi-week rallies that previously pushed XRP to significant highs.
Price Potential: Could XRP Reach $5 in Q4 2025?
As of now, XRP is trading at $2.40, down nearly 5% in the last 24 hours. However, several metrics suggest a potential upside, possibly reaching the $5 mark, which would represent a 108.3% increase from the current price. Such growth would result from a culmination of technical and market-driven factors, fueling optimism about XRP's near-term potential.
Exchange Balances Hit Record Lows
Exchange balances for XRP have reached record lows, according to data from Glassnode. Over 216 million XRP, valued at approximately $556 million, were withdrawn from exchanges this week. Market analyst Steph is Crypto remarked, “Confidence is back!”, highlighting this historic decrease in available supply. Lower exchange balances typically indicate holders moving tokens into long-term storage, signifying conviction in XRP’s future and often preceding major price breakouts.
On-Chain Momentum and Technical Patterns
Analyst Onur emphasized that XRP's Cumulative Volume Delta (CVD) has flipped bullish for the first time in months. He pointed out that a textbook 'cup-and-handle' setup suggests a breakout leading to a $5 target. Previously, similar bullish CVD patterns resulted in XRP surging by 75% within weeks. Onur further added that a combination of ETF speculation and on-chain accumulation could open up a unique opportunity for bullish momentum.
Increased Network Activity Signals Strength
XRP network activity has reached a three-month high, according to CryptoQuant. The number of active XRP addresses has surged to its highest levels since August, historically a prelude to price increases. This growing user activity reflects increased demand and network liquidity, reinforcing the bullish on-chain trend.
Institutional Interest Drives Optimism
Recent developments around XRP ETFs are fueling further excitement. The DTCC website now lists 11 XRP ETF products, a significant move toward official approval. Crypto analyst Skyler noted this as an early signal, stating that the resolution of the U.S. government shutdown may unleash institutional inflows of capital. Market observers believe such inflows could act as a catalyst for XRP's price surge.
XRP Dominance and Broader Market Dynamics
As of mid-November 2025, XRP's dominance in the market is increasing, while Bitcoin's is weakening. This shift suggests that investors are rotating into XRP due to broader market uncertainty. JPMorgan estimates that up to $8 billion could flow into XRP ETFs in the first year. With only 3–5 billion XRP tokens currently available on exchanges, this could lead to a significant 'supply shock', supporting higher price levels. Investors are also buoyed by recent endorsements from firms like BlackRock, adding further credibility to the bullish trend.