Top 5 Catalysts Behind XRP’s $5 Price Prediction for Q4 2025

Rippel has made acquisitions worth $4 billion in 2025, and its 5-year lawsuit with the Securities and Exchange Commission ended.
XRP is underperforming, 33% below its all-time high of 3.84, and the market is now setting its sights on $5.

Ripple’s native token, XRP, is currently ranked as the fourth-largest cryptocurrency, with a market capitalization of approximately $146 billion. XRP is trading at $2.43, up 9.37% over the past week, though it has seen a slight dip over the last 24 hours.

Various indicators highlight the potential for further gains, with projections placing XRP near $5, representing roughly a 108% increase from today’s price.

According to Ali Martinez, should the bull run persist, XRP could be an attractive buy at $1.90 ahead of a potential rally to $6.

1. Low Exchange Balances

Steph is Crypto reported that 216 million XRP is worth around $556 million was pulled off exchanges this week, signaling that confidence in the token is returning. When large volumes of a cryptocurrency are moved from exchange custody into self‑custody or long-term holdings, it reduces the supply available for immediate sale.

This withdrawal of liquidity can create upward price pressure as demand rises, often acting as a bullish indicator for the market.

2. On‑Chain Momentum

Trader Onur highlighted that XRP’s Cumulative Volume Delta (CVD), a key on-chain metric that tracks buy versus sell pressure, has just flipped bullish for the first time in months. This indicates that buying activity is beginning to dominate selling pressure, suggesting strong upward movement.

Onur added,

A textbook cup-and-handle setup is forming, with a clean technical breakout pointing toward $5. This thesis is backed by onchain momentum and renewed ETF buzz. Last time the spot taker CVD flipped this bullish, XRP rallied 75% in weeks.

The cup-and-handle formation, widely regarded by traders as a reliable bullish pattern, typically signals a period of consolidation followed by a strong breakout. Coupled with the renewed buying pressure reflected in the CVD flip, XRP may be positioning itself for a major rally similar to past surges.

3. Increased Network Activity

Data from CryptoQuant shows that active XRP addresses have reached their highest level since August, marking a three-month high. Just last week, 21,595 new wallets were created on the XRP Ledger, marking the fastest two-day surge in user growth since March 2025 and the strongest momentum in eight months.

In a previous analysis, CNF noted that the XRPL’s real-world asset (RWA) market cap jumped to a record $364 million in Q3 2025. During the same period, new addresses surged 46.3% to 447,200, while the total number of addresses grew 6.1% to 6.9 million.

4. XRP ETF Approval

Arguably, another catalyst for XRP is the exchange-traded fund (ETF) filings and the strong expectation of regulatory approval from the Securities and Exchange Commission (SEC).

As of this week, the DTCC (Depository Trust & Clearing Corporation) website lists 11 XRP exchange-traded fund (ETF) products under its active and pre-launch categories. These listings include major institutional issuers such as 21Shares, ProShares, Bitwise, Canary Capital, CoinShares, and Franklin Templeton.

Approval of these ETFs would open the door for capital flows from investors who previously had limited exposure to XRP. Combined with constrained supply, this influx of demand could create a strong supply-demand imbalance, favorable for higher prices.

5. XRP’s Dominance

While Bitcoin remains the largest cryptocurrency, holding 59.3% dominance of the $3.52 trillion market cap, its dominance has been gradually fading. Capital is increasingly rotating into altcoins, and XRP appears well-positioned to benefit, serving as a hedge during broader market uncertainty.

Based on JPMorgan research, an X user emphasized that XRP ETFs could see up to $8 billion in first-year inflows, a development that could profoundly alter market dynamics. With exchange balances sitting between 3–5 billion XRP, this level of institutional participation could lead to an acute supply shock.

“Depending on how quickly capital enters, XRP could realistically reach $20–$100+, as limited supply meets strong institutional demand,” the user explained.