Several key metrics—including exchange supply and on-chain momentum, as well as network activity and regulatory breakthroughs—are looking up for the Ripple token, triggering renewed optimism across the XRP community. As supply dries up and technical momentum builds, analysts say the setup resembles the start of previous multi-week rallies that pushed XRP to new highs.
## 5 Reasons Why XRP Could Reach $5 in Q4 2025
The XRP token was trading at $2.40 at the time of writing, down by almost 5% in the last 24 hours. However, several indicators suggest significant upside potential, possibly reaching the $5 mark. Such a move would constitute a 108.3% increase from the current price.
### 1. Exchange Balances Hit Record Lows
Data from Glassnode, shared by market analyst Steph is Crypto, reveals that more than 216 million XRP—valued at $556 million—were withdrawn from exchanges this week.
“Confidence is back!” the analyst wrote on X (formerly Twitter), highlighting a historic drawdown in available supply.
Lower exchange balances typically indicate that holders are moving tokens into long-term storage, signaling conviction that often precedes major price breakouts. Conversely, transferring tokens to exchanges usually suggests an intention to sell, which can dampen bullish momentum.
### 2. On-Chain Momentum Mirrors 75% Rally Setup
Trader Onur pointed out that XRP’s Cumulative Volume Delta (CVD)—a metric tracking buy-sell pressure—has just flipped bullish for the first time in months.
“A textbook cup-and-handle setup is forming, with a clean technical breakout pointing toward $5,” he said. “Last time the spot taker CVD flipped this bullish, XRP rallied 75% in weeks.”
He added that a combination of ETF speculation and on-chain accumulation could create “a window bulls may not want to ignore.”
### 3. Network Activity at Three-Month High
Data from CryptoQuant shows that active XRP addresses have reached their highest level since August, marking a three-month high.
Historically, increased network activity has preceded upward price movements. If history repeats itself, Ripple could be gearing up for a rally.
Growing user activity often reflects stronger network demand and liquidity circulation, reinforcing the bullish on-chain trend.
### 4. XRP ETF Listings Fuel Institutional Buzz
Market sentiment received another boost as 11 XRP ETF products appeared on the Depository Trust & Clearing Corporation (DTCC) website—a key step in the listing process preceding official approval.
Crypto analyst Skyler described this as an exclusive development, noting that the end of the US government shutdown could unlock ETF approvals, potentially opening the floodgates for institutional XRP inflows.
Investors view the DTCC listing as an early signal that an XRP ETF may be closer than expected, further fueling the $5 price narrative.
### 5. XRP Dominance Surges as Bitcoin Weakens
As of mid-November, XRP’s market dominance (XRP.D) is rising sharply while Bitcoin’s dominance (BTC.D) declines. This shift suggests that investors are rotating into XRP as a hedge amid broader market uncertainty.
Citing JPMorgan research, an X user estimated that up to $8 billion could flow into XRP ETFs in the first year alone—while only 3-5 billion Ripple tokens remain available on exchanges. This dynamic could spark a “supply shock.”
—
Beyond these factors, the XRP community remains euphoric following a recent endorsement from BlackRock. With technical charts aligning, ETF optimism growing, and exchange reserves tightening, XRP is entering one of its most critical quarters in years.
If institutional inflows materialize and on-chain signals remain intact, Q4 2025 could mark the beginning of XRP’s long-awaited breakout toward $5 or beyond.
**However, investors should always conduct their own research before making financial decisions.**
https://bitcoinethereumnews.com/tech/all-the-reasons-analysts-say-xrp-price-could-reach-5-soon/
