Ripple’s XRP staged a strong recovery in 2025, reclaiming its position among the top three cryptocurrencies by market capitalization.
The token, once sidelined by the SEC lawsuit, has made a powerful comeback, rising 25% last week to reach $2.57.
This recent rally has been driven not only by technical momentum but also by on-chain metrics that indicate growing interest from both retail and institutional participants.
In the first months of 2025 alone, XRP added more than 638,000 new wallets — an 11% increase.
That brings the number of active XRP wallets close to 6.5 million, marking a 12-year network high.
The uptick in user adoption coincides with XRP’s renewed role as a viable alternative to Bitcoin in diversified portfolios, a view reinforced by a recent analysis from leading asset manager WisdomTree.
Wallet data shows rising user engagement
The sharp increase in wallet creation follows years during which regulatory headwinds suppressed activity on the Ripple network.
Analysts interpret the wallet growth as a return of confidence in XRP’s long-term utility.
While speculation remains a factor in crypto markets, the steady rise in active, non-empty wallets suggests user interest is shifting toward more sustained involvement.
At the same time, WisdomTree — a global asset manager overseeing more than $100 billion in assets — released a report naming XRP the only altcoin that aligns consistently with Bitcoin as a portfolio diversifier.
That institutional endorsement is seen as a key driver of renewed investor interest, especially as large holders often seek tokens with solid fundamentals and clearer regulatory standing.
Binance futures data highlights strong buyer interest
Beyond wallet figures, Binance trading data also points to bullish momentum. XRP futures open interest fell from a $1.5 billion peak to $530 million and has since begun to rise again.
This metric tracks the total value of open derivative contracts; increases typically signal traders preparing for further volatility.
Although some traders maintain short positions, on-chain analysts like FundingVest (via CryptoQuant) report that buyers are absorbing these shorts.
That dynamic could foreshadow a breakout, particularly if resistance levels continue to weaken under buying pressure.
Funding rates have returned to neutral territory, a pattern that often precedes significant price moves as leverage resets.
Liquidation patterns indicate market strength
Data from Coinglass supports the notion of growing bullish pressure. XRP recorded $6.86 million in liquidations over recent sessions, with contributions from both long and short traders nearly equal.
Notably, longs accounted for $3.59 million while shorts represented $3.27 million.
This balanced split reflects an active battle between buyers and sellers, but XRP’s ability to hold above $2.50 during volatile stretches suggests resilience.
Technically, analysts are watching a bullish pennant forming on XRP’s weekly chart. Chart commentator MackAttackXRP notes that a confirmed breakout could target $3.40 and $3.60.
Assuming broader market sentiment remains constructive, more aggressive targets in the $5.00 to $6.00 range are also being discussed.
XRP is currently trading around $2.63, up nearly 24% over the past four hours, seen by many as steady upward movement rather than a lightning-fast spike.
Source: CoinMarketCap
If momentum holds, XRP could reach the $3.00 level as early as this weekend, though further gains will depend on sustained buyer demand strong enough to overcome key resistance zones.