• Exchange inflow data shows heavy transactions from large XRP holders, similar to previous market peaks, signaling possible short-term price corrections.
  • XRP consolidates within the $3.5–$4 zone as traders closely watch the $3 threshold, which may determine support strength for recovery.
  • If $3 support holds, XRP could test resistance at $4.2–$4.5, with technical structure suggesting potential targets above $5 in 2025.

Exchange inflows hint at an XRP correction as recent data shows large transactions moving to trading platforms. While this suggests short-term pressure, holding the $3 level may determine whether the next bullish phase can develop.

Exchange Inflows Raise Short-Term Risk

XRP inflow patterns have historically preceded key market tops. In 2018, the $3 peak, in 2021 near $1.9, and in 2023 around $0.9, were all marked by heavy exchange activity before declines.

At the beginning of 2025, XRP rallied toward $3.5 to $4 with visible surges in inflows across multiple value bands. The largest movements, ranging from 100K to more than 1M XRP, point to whale participation.

Source: Cryptoquant

Such movements generally suggest selling pressure from large holders. Market data now signals that some investors are securing profits, raising the risk of a near-term correction.

$3 Becomes the Decisive Support Zone

XRP is consolidating between $3.5 and $4 while inflows remain elevated, keeping downward pressure in play.In the event that this momentum sustains, then a decrease to $2.8 to 3.0 might be realized.

Nevertheless, the most important level to observe is the $3 threshold.. If buyers maintain this floor, the asset could regain momentum. Sustained defense of $3 would suggest market participants are accumulating rather than exiting positions.

The consolidation zone is therefore shaping up as a decisive battleground. Traders are monitoring whether this support can withstand selling pressure and act as a base for recovery.

Potential for a Renewed Bullish Leg

If XRP successfully holds $3 support, attention may shift to resistance between $4.2 and $4.5. Breaking through this range could establish the path toward fresh price discovery.

Unlike the cases in earlier cycles, XRP now experiences a more dominating structural uptrend. Increasing support and steady strength in the market would imply that long-term growth prospects would be intact despite short-term fluctuations.

As long as the bullish structure continues, targets beyond $5 in 2025 remain technically possible. Exchange inflow data indicates corrections may be consolidation phases before the next upward leg.

Ava Nakamura is a seasoned crypto journalist and blockchain enthusiast who has been covering digital assets since 2017. With a sharp eye for market trends and a passion for decentralization, Ava breaks down complex crypto topics into engaging stories. She covers Bitcoin, altcoins, DeFi, and everything in between — aiming to empower readers through knowledge.

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