XRP’s $15B liquidity shock fades – Is $3.80 finally in sight?

Key Takeaways

Stable exchange flows and persistent DEX demand strengthen XRP’s market structure. Meanwhile, a cup and handle breakout confirmed bullish momentum.

Ripple [XRP] markets experienced a dramatic liquidity event in October 2024, when Exchange Inflows peaked at 15 billion.

Exchange Outflows mirrored the move, hitting 15 billion, showing strong demand absorbed selling pressure.

Both later stabilized with Inflows near 60 million and Outflows at 65 million, forming a healthier balance than the old 500 million baseline.

However, the sustainability of this trend depends on continued demand at the recent levels.

With stabilized liquidity, volatility risks appear reduced, but breaking the balance could quickly shift momentum in either direction.

XRP: breakout attempt confirmed

AMBCrypto, via the daily chart attached below, inferred a classic cup and handle formation built from March through July, followed by a handle shaped by a descending channel. 

Recently, XRP broke above this channel, retesting the $3.08 level and showing early signs of bullish strength. 

The key barrier zone between $3.40 and $3.80, where sellers previously capped advances, remains the decisive region. 

A confirmed breakout above this range could open the path toward higher price targets. However, failure to clear resistance might result in consolidation before another attempt develops.

Active Addresses show resilience

Active Addresses peaked at 108,000 in December 2024. They cooled but stabilized near 26,000. This remained above early 2025 levels of 17,500.

This stability highlights sustained user participation, which reinforces liquidity and supports healthy market dynamics. 

Furthermore, even with reduced network activity, the current levels indicate that meaningful adoption persists. Having said that, falling addresses flagged fragile sentiment if adoption slowed further.

DEX activity stays persistent

Decentralized exchange activity provides another important measure of XRP’s organic demand.

For instance, Volumes spiked to 53 million in August 2023 before stabilizing near 1 million, then surged again to 60.5 million in November 2024. 

Present levels of 1.6 million remained above earlier lows, reflecting continued reliance on decentralized platforms.

And that basically showed that traders remain engaged outside CEXs, ensuring strong demand during inflow events. 

That shift set up decentralized markets as a backbone of long-term liquidity.

The confluence of stable Inflows, resilient Active Addresses, and persistent DEX demand suggested XRP had built firmer ground.

The technical breakout could carry the price beyond $3.80. Even so, failure to clear this zone might extend the consolidation phase.