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5 Key Trends to Watch in XRP After Its Explosive 70% July 2025 Rally |
After a relatively sluggish start to the year, XRP surged by over 70% in July 2025, reigniting investor interest in the popular altcoin. The rally follows a significant price breakout that began in late 2024, sparking optimism that Ripple’s native token could see even further upside—especially as the legal battle with the U.S. SEC nears a potential resolution.
Below, we break down five critical developments that could shape XRP's trajectory in the weeks ahead.
1. XRP Price Breakout and $7 Analyst Target
According to renowned crypto analyst Crypto King, XRP has officially broken out of a long-term downtrend that stretched from July 2023 through November 2024. Following a brief corrective phase, the token regained upward momentum and is now trading at $3, with a modest 2% gain in the past 24 hours.
“We’re looking at a potential climb to $7 per XRP,” says Crypto King, citing strong momentum and historical resistance levels.
If this projection holds, it would mark a 150% upside from current levels, setting the stage for a significant market movement.
For a deeper look at price trends, visit: TradingView XRP/USD Chart
2. Sharp Drop in Exchange Supply Indicates Bullish Accumulation
Fresh data from CryptoQuant shows that XRP's exchange reserves fell from 3.02 billion to 2.3 billion between July 24 and August 7. This represents a notable decline in sell-side liquidity, typically interpreted as a bullish signal.
👉 Why this matters:
When traders withdraw tokens from centralized exchanges, it's often a sign they're planning to HODL—reducing short-term selling pressure on the market.
This trend suggests growing confidence in XRP’s long-term prospects and could serve as fuel for continued upward movement if demand remains strong.
3. NVT Ratio Surge: What It Says About On-Chain Activity
Despite the price rise, XRP’s Network Value to Transactions (NVT) ratio has jumped 44% in just 24 hours, hitting a level of 225.
The NVT ratio compares a token’s market capitalization with its on-chain transaction volume—higher numbers often point to overvaluation or lagging usage growth.
Key Insight:
- Price is rising
- On-chain utility is not keeping pace
This disconnect should be closely monitored. If on-chain activity doesn't catch up, XRP may face increased volatility or a pullback in price as valuations outpace network fundamentals.
4. Legal Developments Could Bring Final U.S. Regulatory Clarity
The ongoing legal saga between Ripple and the U.S. Securities and Exchange Commission (SEC) may finally be reaching a pivotal moment.
As of August 7 at 03:00 UTC, the SEC is expected to respond to Ripple’s motion to withdraw its appeal. A broader decision could follow by mid-August, potentially offering full legal clarity for XRP in the U.S. market.
Why this matters:
- A favorable ruling could unlock $125 million held in escrow.
- Ripple could restart full-scale U.S. operations.
- Over 1,700 smart contracts and partnerships could be executed and announced.
Related Reading: Ripple vs. SEC Case Timeline
5. Institutional Momentum and ETF Push by SBI Holdings
Institutional adoption is heating up.
SBI Holdings, one of Japan’s financial giants, has submitted an application to launch the first XRP-based ETF. If approved, this would open the doors to massive retail and institutional inflows, similar to what Bitcoin experienced post-ETF approval.
Additionally:
- Firms are planning up to $1 billion in XRP purchases for treasury diversification.
- Institutions see XRP as a compliant, scalable cross-border payment solution amid evolving regulatory clarity.
This narrative could significantly strengthen XRP’s position as a preferred asset in both speculative and utility-driven portfolios.
Final Thoughts: Can XRP Sustain This Momentum?
While XRP’s 70% rally in July has reignited bullish sentiment, the path forward depends on five crucial factors:
- Sustained price momentum and resistance breakout confirmation
- Continued exchange reserve depletion
- Rising on-chain utility alongside price
- A decisive legal victory in the Ripple-SEC case
- Institutional engagement via ETF approval and treasury adoption
If these pieces fall into place, XRP could not only reclaim its previous all-time highs but possibly exceed them, cementing its status as a leading altcoin for both retail and institutional investors.
Frequently Asked Questions (FAQs)
Q1: Why is the drop in XRP exchange supply important?
👉 A lower supply on exchanges typically reduces short-term selling pressure and signals that traders are accumulating rather than preparing to sell.
Q2: What is the significance of the NVT ratio for XRP?
👉 A rising NVT ratio indicates that price is increasing faster than on-chain usage. This could suggest speculative activity or temporary overvaluation.
Q3: What happens if Ripple wins the SEC case?
👉 Ripple could unlock escrowed funds, resume U.S. operations, and strengthen legal clarity—opening the door for broader adoption.
Q4: Could an XRP ETF drive price gains?
👉 Yes. Institutional access via ETFs often leads to increased demand, liquidity, and price stability—especially during bull cycles.
Explore More XRP Insights:
- What’s Driving XRP’s Institutional Adoption?
- How Legal Clarity Could Transform Ripple's Future
- Top Altcoins to Watch in Q3 2025
