The cryptocurrency market is abuzz with renewed interest in XRP, the native token of Ripple Labs. After a recent 25% price correction, XRP is showing signs of a potential rebound, capturing the attention of traders, analysts, and long-term investors alike. With technical indicators flashing buy signals and on-chain data revealing major accumulation trends, many are asking: Is now the right time to buy XRP?
This article dives deep into the latest market dynamics, expert insights, and on-chain activity surrounding XRP to help you make an informed decision.
Bullish Signal Detected: TD Sequential Hints at Rebound
A prominent crypto analyst recently took to X (formerly Twitter) to highlight a compelling technical pattern forming on XRP’s price chart. According to their analysis, the TD Sequential indicator—a popular tool used to predict price reversals—is currently signaling a potential buy opportunity for XRP.
TD Sequential works by identifying exhaustion points in price trends, often preceding reversals. In this case, the setup suggests that the recent downward momentum may be coming to an end, paving the way for a bullish recovery.
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While this signal is not a guaranteed predictor, it adds weight to growing speculation that XRP could be nearing a bottom after its 25% pullback. Historically, similar setups have preceded significant rallies, especially when combined with supportive on-chain data.
$18 Million XRP Outflow: Whales Are Accumulating
One of the most telling signs of market sentiment comes from on-chain activity—and the data paints a bullish picture.
According to Coinglass, a leading on-chain analytics platform, over $18 million worth of XRP has moved off exchanges in recent days. This outflow is a strong indicator that large holders—often referred to as whales—are taking control of their assets and likely preparing for a long-term hold.
When tokens leave exchanges, they are typically being transferred to private wallets, reducing circulating supply and potentially limiting selling pressure. This kind of accumulation often precedes price increases, as reduced liquidity on exchanges can amplify upward movements when demand returns.
This trend suggests that despite short-term volatility, long-term confidence in XRP remains strong.
Market Sentiment: Bulls vs. Bears
While long-term holders are accumulating, short-term traders are divided—creating a classic tug-of-war between bulls and bears.
Data from Coinglass reveals that:
- Long positions total $20.80 million, with an average leverage of 2.346x
- Short positions are even larger, totaling $32.10 million, with slightly higher leverage at 2.442x
This imbalance means that more traders are currently betting on a price decline. However, high leverage also increases the risk of liquidation cascades if the market moves sharply in either direction.
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If XRP begins a sustained upward move, the cluster of short positions could trigger a short squeeze, forcing bearish traders to close their bets and further accelerating the rally. Conversely, if the price drops further, long positions may face liquidation—adding downward pressure.
Either way, the current setup suggests high volatility ahead.
Current Price Momentum: Signs of Stabilization
As of today, XRP is trading around $2.42, marking a modest recovery of over 0.15% in the past 24 hours. While this gain is relatively small, it comes after a steep decline, indicating that selling pressure may be easing.
However, trading volume has dropped by 3.5% compared to the previous day, suggesting that market participation remains cautious. Lower volume during price stabilization can sometimes precede a breakout—especially if institutional or whale activity continues behind the scenes.
The combination of technical buy signals, exchange outflows, and compressed volatility creates a setup that many analysts believe could ignite the next leg of XRP’s price movement.
Frequently Asked Questions (FAQ)
Is XRP a good investment in 2025?
XRP remains a compelling asset due to its strong use case in cross-border payments, ongoing legal clarity from the SEC case, and growing adoption by financial institutions. While regulatory risks were once a major concern, recent developments have reduced uncertainty. Combined with current technical and on-chain signals, XRP presents a potentially attractive opportunity for both short- and long-term investors.
What is the significance of exchange outflows?
When large amounts of cryptocurrency move off exchanges, it typically indicates that holders are moving assets to private wallets for long-term storage. This reduces available supply on exchanges, which can limit selling pressure and support price growth over time. The $18 million XRP outflow suggests strong confidence among large investors.
Can XRP reach $3 or higher in 2025?
While no price prediction is guaranteed, many analysts believe XRP has the potential to surpass $3 if bullish momentum continues and broader market conditions improve. Key drivers include increased adoption, positive regulatory outcomes, and macroeconomic factors like reduced interest rates that could boost risk assets like cryptocurrencies.
What is TD Sequential and why does it matter?
TD Sequential is a technical analysis tool developed by Tom DeMark that identifies potential trend exhaustion and reversal points. When it generates a buy or sell signal—especially after a prolonged downtrend—it can indicate that a price bottom or top is near. Its appearance on XRP’s chart adds credibility to the idea of an upcoming rally.
Are short positions dangerous for XRP’s price?
High short positions can be risky—but also beneficial for price movement. If sentiment shifts bullish, short sellers may be forced to buy back their positions to avoid losses, triggering a short squeeze that drives prices higher rapidly. However, if bearish momentum continues, it could deepen the decline. Monitoring open interest and liquidation levels is key.
Should I buy XRP now or wait?
Timing the market perfectly is difficult. However, current indicators—technical buy signals, whale accumulation, and reduced exchange supply—suggest that we may be near a turning point. Dollar-cost averaging (DCA) into a position could help mitigate risk while allowing participation in potential upside.
Final Thoughts: Is This the Turning Point for XRP?
XRP is at a pivotal moment. After a sharp correction wiped out nearly a quarter of its value, signs are emerging that the tide may be turning.
From technical indicators like TD Sequential flashing buy signals to whales quietly accumulating $18 million worth of tokens off exchanges, the foundation for a recovery appears to be forming. Meanwhile, leveraged short positions create fertile ground for explosive moves if momentum shifts upward.
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While risks remain—especially in a volatile and sentiment-driven market—the confluence of factors suggests that now could be a strategic time to evaluate XRP as part of your portfolio.
Whether you're a day trader eyeing a short-term bounce or a long-term believer in Ripple’s vision for global payments, staying informed and prepared is essential.
Monitor key levels around $2.40–$2.50 for confirmation of sustained momentum. A break above resistance with rising volume could be the catalyst that reignites broader market interest—and sends XRP higher once again.
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