Several key metrics, including exchange supply and on-chain momentum, as well as network activity and regulatory breakthroughs, are looking up for the Ripple token, triggering renewed optimism across the XRP community.

As supply dries up and technical momentum builds, analysts say the setup resembles the start of previous multi-week rallies that pushed XRP to new highs.

5 Reasons Why XRP Could Reach $5 in Q4 2025

The XRP token was trading for $2.40 as of this writing, down by almost 5% in the last 24 hours. However, several metrics suggest that there is more upside potential, potentially reaching the $5 mark. Such a move would constitute a 108.3% move above the current price.

Ripple (XRP) Price Performance. Source: BeInCrypto

The following are some reasons why a $5 price increase for XRP may be on the cards.

1. Exchange Balances Hit Record Lows

Citing data from Glassnode, data shared by market analyst Steph is Crypto shows that more than 216 million XRP, valued at $556 million, were withdrawn from exchanges this week.

“Confidence is back!” the analyst wrote on X (Twitter), highlighting a historic drawdown in available supply.

XRP exchange balances. Source: Glassnode

Lower exchange balances often suggest holders are moving tokens into long-term storage, a sign of conviction that precedes major price breakouts.

Conversely, moving tokens to exchanges often suggests intention to sell, with the resulting bearish sentiment impeding potential for a rally.

2. On-Chain Momentum Mirrors 75% Rally Setup

Further, trader Onur pointed out that XRP’s Cumulative Volume Delta (CVD), a metric tracking buy-sell pressure, has just flipped bullish for the first time in months.

“A textbook cup-and-handle setup is forming, with a clean technical breakout pointing toward $5,” he said. “Last time the spot taker CVD flipped this bullish, XRP rallied 75% in weeks.”

XRP’s CVD. Source: CryptoQuant

He added that the combination of ETF speculation and on-chain accumulation could create “a window bulls may not want to ignore.”

3. Network Activity at Three-Month High

Additionally, data from CryptoQuant shows that active XRP addresses have reached their highest level since August, signifying a three-month high. Notably, this level has historically preceded upward price movements, and if history rhymes or repeats itself, the Ripple price could rally soon.

XRP Active Addresses. Source: CryptoQuant

Growing user activity often reflects stronger network demand and liquidity circulation, reinforcing the bullish on-chain trend.

4. XRP ETF Listings Fuel Institutional Buzz

Market sentiment received another boost this week as 11 XRP ETF products appeared on the DTCC (Depository Trust & Clearing Corporation) website, a key step in the listing process preceding official approval.

Crypto analyst Skylercalled it an exclusive development, noting that the end of the US government shutdown could unlock ETF approvals, potentially opening the floodgates for XRP institutional inflows.

Investors view the DTCC listing as an early signal that an XRP ETF may be closer than expected, adding fuel to the $5 narrative.

5. XRP Dominance Surges as Bitcoin Weakens

Meanwhile, as of mid-November, XRP’s market dominance (XRP.D) is rising sharply while Bitcoin’s (BTC.D) declines. The shift suggests that investors are rotating into XRP as a hedge during broader market uncertainty.

XRP dominance vs BTC dominance. Source: TradingView

Citing JPMorgan research, an X user estimated that up to $8 billion could flow into XRP ETFs in the first year alone, with only 3–5 billion Ripple tokens available on exchanges. This dynamic could spark a “supply shock.”

Beyond these, it is also worth noting that the XRP community remains euphoric about a recent endorsement from BlackRock. With technical charts aligning, ETF optimism growing, and exchange reserves tightening, XRP is entering one of its most critical quarters in years.

If institutional inflows materialize and on-chain signals remain intact, Q4 2025 could mark the beginning of XRP’s long-awaited breakout toward the $5 mark or beyond. However, investors must always rely on their own research.