XRP’s liquidity stabilized in late 2024 with exchange inflows/outflows normalizing and persistent DEX demand; a confirmed cup-and-handle breakout above $3.40–$3.80 would likely extend bullish momentum, while failure to clear that zone could return XRP to consolidation.
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Stable exchange flows and DEX volumes support XRP’s market structure.
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Active addresses and on-chain outflows show sustained user participation, reducing short-term volatility.
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Exchange inflows peaked at 15B in Oct 2024; later inflows/outflows stabilized near 60–65M.
Meta description: XRP breakout and liquidity update: XRP liquidity stabilizes, DEX demand persists — read analysis and trade implications. Stay informed with COINOTAG.
What is driving XRP’s recent price momentum?
XRP breakout and liquidity are driven by stabilized exchange flows, persistent DEX demand, and resilient active-address metrics. Exchange inflows and outflows that peaked in Oct 2024 settled into much lower, balanced levels, improving market structure and enabling a technical cup-and-handle breakout attempt.
How did exchange flows change in late 2024 and early 2025?
Exchange inflows surged to 15 billion in October 2024 and outflows matched that level, indicating strong demand absorbed selling. Both metrics later normalized to roughly 60 million (inflows) and 65 million (outflows), a markedly healthier balance compared with the prior 500 million baseline. These changes reduced immediate liquidity stress while keeping volatility muted.
Key Takeaways
- Stable flows: Exchange inflows/outflows normalized from 15B peaks to ~60–65M, improving market balance.
- On-chain participation: Active addresses remain elevated relative to early 2025 lows, supporting liquidity.
- Technical setup: A cup-and-handle breakout is in progress; clearing $3.40–$3.80 is the critical next step.
XRP: breakout attempt confirmed
Chart patterns show a cup formed March–July and a handle within a descending channel. XRP cleared that channel and retested $3.08, indicating initial bullish confirmation. Traders should watch the $3.40–$3.80 zone: a sustained break above this barrier would open higher targets; rejection would likely extend consolidation.
Source: TradingView (chart referenced as a plain-text source)
Active addresses show resilience
Active addresses peaked at 108,000 in December 2024 and cooled to a stabilized range near 26,000 — above early-2025 lows of 17,500. This sustained participation supports market depth and suggests meaningful adoption remains in place.
That said, a sharp decline in addresses would signal weakening sentiment and could undermine the current technical setup quickly.
Source: CryptoQuant (data referenced as a plain-text source)
DEX activity stays persistent
Decentralized exchange volumes spiked to 53M in August 2023, fell toward 1M, then surged again to 60.5M in November 2024. Current DEX volumes near 1.6M are above prior lows and indicate traders remain active off centralized exchanges — a supportive sign for organic demand.
Source: CryptoQuant (data referenced as a plain-text source)
Frequently Asked Questions
What would confirm a sustainable XRP breakout?
A sustainable breakout requires clean price action above the $3.40–$3.80 resistance zone, supported by balanced exchange flows and rising DEX volumes. Confirmation includes a follow-through rally and higher active-address engagement over several daily closes.
How should traders manage risk around the breakout?
Use defined stop levels below the handle retest, scale position size to account for volatility, and monitor on-chain metrics (inflows/outflows, DEX volumes, active addresses) for signs of weakening demand.
Which on-chain metrics are most relevant right now?
Exchange inflows/outflows, DEX volumes, and active addresses are key. Exchange flow normalization to ~60–65M and persistent DEX activity indicate structural improvements compared to the 15B inflow events in Oct 2024.
Who provided the data referenced in this report?
Charting and on-chain datasets referenced: TradingView (charts), CryptoQuant (on-chain metrics). These are cited here as plain-text sources without external links.
When was this article published and updated?
Published: 2025-09-14. Updated: 2025-09-14.
Conclusion
The confluence of normalized exchange flows, resilient active-address counts, and persistent DEX demand suggests XRP has built firmer structural support. The ongoing cup-and-handle breakout needs a decisive close above $3.40–$3.80 to confirm sustained upside; otherwise, consolidation remains the probable outcome. Follow on-chain metrics and daily price action for near-term clarity. COINOTAG will monitor developments and publish updates as new data emerges.
