XRP Velocity Explodes to 2025 Peak as Liquidity Surges

On December 2, 2025, the network velocity of XRP shot to 0.0324, and this new annual high is an indicator that XRP tokens are being circulated faster in the market with this reflecting greater liquidity and high levels of transactions within the ledger. The information provided by CryptoQuant shows that traders and whales were transferring large amounts of XRP. This reflects how fast the asset transfer happens between wallets, exchanges, and smart-contract transactions within this high-volume period.

Whale Trade Promotes Liquidity Growth and Money Squeeze Price Movements

Mammal XRP transfer aggressors added force to the network flows and this influx of whale driven transfers deepened liquidity positions which were already advantageous due to robust December ETF inflows of more than 666 million. The price of XRP surged to around $3.60 in the process and analysts cite whale buying, an increase in trading demand, and positive technical signals, which have all gone in line with the velocity breakout, as the factors that have driven the rise in price.

Technical Indicators Portal Rising Trader Confidence in Upside Targets

The positive crossovers of RSI, the growing volume, and the positive liquidity indicators of XRP all indicate that traders have begun to take positions on the possibility of a higher target in the 2.33-2.40 support-resistance range in short-term volatility. The open interest increased in all the major futures exchanges, and the funding rate temporarily became positive, with longs being more aggressive. This change shows that traders anticipate further positive price action, particularly as liquidity and whale transfers strengthen the structural bullish case. Analysts observe that high leverage tends to enhance price movements, which provide an environment of sharp upward extensions in the event spot demand is robust.

On-Chain Action Supports the argument of continued Bullish Run

Other on-chain measurements like active addresses, ledger settlements and exchange inflow-outflow ratios are indicators of long-term network-wide participation. The address action grew in the first half of December, implying that wholesale and retail participants are joining whales in the activity. In the meantime, exchange outflows were bigger than inflows at critical intraday times pointing to accumulation patterns and not distribution. All these indicators reinforce the perception that the XRP is on its way to grow due to a true organic demand and not due to a rotating high-risk short-term.

Wider macro factors still play in the momentum of XRP as betterment in risk sentiment and future expectations of the Federal Reserve to ease lead capital to high liquidity crypto assets. The traders are currently looking at the area formerly in conflict between the $3.70 and 3.80 zone in order to see the confirmation of a breakout that may lead to the opening of the way to greater heights. Analysts state that XRP needs to continue with a high velocity trend and consistent whale actions to keep the trend moving in the right direction, yet they mention that the current market dynamics is that bullish formations will continue to hold as long as macro sentiment continues to be favorable.