XRP Price Surge Masks 10%+ User Drop: What’s Next?

XRP’s price has skyrocketed, climbing over 12% in August 2025 after the Ripple-SEC lawsuit finally wrapped up. Trading at $3.17, it’s down slightly from a $3.22 high. 

Yet, a 10%+ drop in daily active addresses raises red flags about the rally’s staying power. Let’s break down the data and explore XRP’s future.

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Legal Victory Fuels XRP’s Rally

On August 7, 2025, Ripple settled its four-year legal battle with the SEC, paying a $125M fine. This resolution lifted a massive cloud of uncertainty, sparking an 11% price jump to $3.27. 

Trading volume surged, reflecting strong market enthusiasm and renewed institutional confidence in XRP’s potential.

Market Sentiment and Social Buzz

The lawsuit’s end shifted sentiment dramatically. XRP’s price stabilized at $3.17, despite a 1.2% daily dip. 

Posts on social media are buzzing with optimism, with some users predicting $8-$15 by September. However, the rally’s sustainability hinges on broader market dynamics and new user engagement.

Read Also: $19M Tokenized Assets in 2030: Is Ripple's Prediction True?

On-Chain Data Raises Concerns

CryptoQuant reports a 10%+ drop in XRP Ledger’s daily active addresses, falling to 24,701 post-lawsuit. 

This decline suggests the price surge was driven by existing holders reshuffling capital, not new users joining the fray. Without fresh adoption, the rally’s momentum could fizzle out.

Exchange Flow Trends

• Deposits Spike: Major exchanges saw a surge in depositing addresses before and after the SEC ruling, hinting at short-term profit-taking by traders.

• Withdrawals Rise: Increased withdrawals also occurred, signaling some investors are accumulating XRP for the long haul.

This mixed activity reflects a market split between speculative trading and longer-term positioning, creating uncertainty about price stability.

Factors Influencing XRP’s Price Path

Binance’s XRP reserves are climbing again after a dip, while Upbit’s reserves show steady growth, highlighting Asia’s growing role in XRP trading. 

Meanwhile, OKX’s XRP holdings are nearly depleted, suggesting trading is concentrated among fewer players, which could lead to volatility if profit-taking accelerates.

Ripple’s Ecosystem Expansion

Ripple’s recent moves bolster XRP’s outlook. The acquisition of Standard Custody and the launch of the RLUSD stablecoin enhance XRP’s utility in cross-border payments. 

Potential ETF approvals and XRPL’s DeFi growth could drive adoption, but inflationary pressures from Ripple’s monthly escrow releases may cap gains.

Read Also: XRP Surges in Korea Post-BDACS Deal, Ripple Custody Live on Exchanges

Risks to XRP’s Rally

Despite the bullish vibe, XRP faces challenges. It struggles to break the $3.60 resistance level, with some analysts forecasting a pullback to $2.90-$3.20 if momentum stalls. 

A broader crypto market correction, especially if Bitcoin dips, could drag XRP down, as could new regulatory hurdles.

Need for Broader Adoption

• User Engagement Gap: The 10%+ drop in active addresses underscores a lack of new retail investors, critical for sustaining the rally.

• Profit-Taking Risks: Concentrated trading among existing holders increases the chance of sharp sell-offs, especially if exchange reserves keep rising.

Without a wave of new users, XRP’s price gains may falter under selling pressure from short-term traders.

What’s Next for XRP?

XRP’s immediate future depends on breaking key resistance levels. Analysts suggest $3.60 is a critical threshold; surpassing it could push XRP toward $5 by September. 

However, failure to attract new users or hold above $3.20 might lead to a correction, especially if Bitcoin’s market weakens.

Long-Term Potential

XRP’s fundamentals remain strong. Ripple’s partnerships with banks and its focus on cross-border payments position XRP for growth. 

The XRPL’s DeFi and NFT capabilities are expanding, and potential ETF approvals could draw institutional capital. Yet, sustained retail engagement is crucial to avoid volatility spikes.

Read Also: Ripple News: XRP Market Share Set to Double with ETF Growth & Adoption

Conclusion

XRP’s post-SEC price surge to $3.17 marks a turning point, driven by legal clarity and institutional interest. However, a 10%+ drop in active users signals reliance on existing holders, raising doubts about the rally’s durability. 

To hit $5-$9 by September, XRP needs to break $3.60 and attract new retail investors. Investors should monitor on-chain data, exchange flows, and market sentiment closely to gauge XRP’s next move.

FAQ

Why did XRP’s price jump over 12% in August 2025?

The Ripple-SEC lawsuit ended with a $125M settlement, clearing legal uncertainty and boosting institutional confidence.

What’s the biggest concern behind XRP’s rally?

A 10%+ drop in daily active addresses suggests weak new user growth, risking the rally’s sustainability.

Which price level is critical for XRP’s next move?

Breaking above $3.60 could trigger a push toward $5; failing to hold $3.20 risks a pullback.

How are exchange flows shaping XRP’s market?

Binance and Upbit show rising reserves, signaling profit-taking and accumulation, while OKX reserves are nearly depleted.

What factors could drive XRP’s long-term growth?

Ripple’s stablecoin launch, Standard Custody acquisition, XRPL’s DeFi expansion, and potential ETF approvals.

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