XRP Velocity Just Hit 2025 Highs. Prepare For The Plunge.
The early December rebound in $XRP is structurally weak. On-chain metrics are screaming a warning that cannot be ignored, signaling significant downside risk that could easily overwhelm recent optimism.
Ledger Velocity has spiked to its highest recorded level, a dynamic that signifies rapid network transfers rather than long-term accumulation. Historically, these spikes precede high volatility and often align with massive whale activity preparing for distribution.
The derivatives market confirms the bearish pressure. Funding rates remain deeply negative, reflecting persistent short accumulation. This level of bearish dominance, last seen during major dips, strongly suggests that $XRP is on track to retest the critical $2.0–$1.9 support zone.
Furthermore, regional concentration risk is mounting. Exchange reserves on major Asian platforms have doubled Binance’s holdings. If these large, concentrated reserves begin moving to the market, the selling pressure will amplify the downside catalyst.
The only mitigating factor is the institutional pipeline. Net inflows into $XRP focused ETFs have been positive, and institutional acceptance continues to grow. However, even these inflows are currently insufficient to overturn the broader downtrend that has been in place since July. The confluence of rising Velocity, short pressure, and concentrated reserves makes further decline highly probable.
Not financial advice. Trade responsibly.
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