As 2025 draws to a close, XRP presents a study in contrasts. While its price action appears subdued following a volatile summer, a closer examination of network activity and institutional flows reveals a far more resilient foundation. The current market valuation seems disconnected from the robust usage and growing infrastructure supporting the digital asset.

A Cautious Market and Technical Correction

The digital currency XRP peaked in July 2025, reaching approximately $3.65. This surge was fueled by the final settlement in the protracted legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC). Since that high, the market has entered a corrective phase. The price has retreated significantly, currently trading around $1.83.

Over the past month, XRP has declined by roughly 17%, sitting nearly 40% below its 52-week high. Recent trading has been comparatively calm, with the 30-day annualized volatility at 42.7%—a moderate level for a major cryptocurrency. The Relative Strength Index (RSI) reading of 28.8 indicates an oversold condition, suggesting that selling pressure may be waning. This technical picture aligns with a “Fear & Greed Index” score of 23 (Fear), reflecting continued caution among retail investors after an extended period of profit-taking.

On-Chain Metrics Tell a Different Story

Beneath the surface price weakness, key on-chain indicators point to sustained network utility.

• Daily Active Addresses have stabilized at around 170,000 after briefly touching 191,000 in December. This level remains substantially higher than the lows seen during the 2024 bear market, indicating consistent use of XRP for payments and settlements despite diminished speculative hype.
• A divergence in holder behavior is evident. Smaller wallets (holding under 1,000 XRP) have reduced their balances, hinting at retail capitulation.
• Conversely, large addresses, or “whales” (holding 10 to 100 million XRP), have maintained or slightly increased their positions over the last 48 hours. This activity has effectively absorbed selling pressure around the $1.85 price level.

Institutional Accumulation via ETFs

A significant stabilizing force has emerged from institutional investment channels. The ecosystem of Exchange-Traded Funds (ETFs) linked to XRP, established in 2025, has become a major source of demand, largely independent of erratic spot market movements.

• U.S. spot XRP ETFs have recorded net inflows for seven consecutive weeks.
• The combined Assets Under Management (AUM) for leading XRP investment products now exceeds $1.25 billion.
• Recent daily inflows have averaged about $11.9 million, signaling that asset managers are using the current sideways-to-downward price phase to accumulate positions gradually.

These persistent ETF inflows starkly contrast with the skeptical retail sentiment and provide crucial support above key price levels.

Ecosystem Development: RLUSD and Regulatory Clarity

The Rise of the RLUSD Stablecoin

Within the XRP ecosystem, the USD-pegged stablecoin RLUSD has gained substantial traction. Since its broader rollout earlier in the year, its market capitalization has grown to nearly $1.3 billion by late December.

Should investors sell immediately? Or is it worth buying XRP?

RLUSD now serves as a vital liquidity pool for decentralized applications on the XRP Ledger, particularly for automated market makers (AMMs). This development reduces reliance on bridged assets from other chains and strengthens the native DeFi infrastructure on the XRPL.

The SEC Settlement: A Regulatory Watershed

The resolution of the SEC lawsuit in August 2025 marked a pivotal turning point. The legal clarity has largely dispelled the former “regulatory overhang” that clouded the asset’s prospects.

For banks and financial institutions, this means they can now explore and implement XRPL-based settlement solutions without the imminent threat of regulatory action. Market observers cite this newfound clarity as a primary driver behind the consistent inflows into XRP ETFs.

Technical Analysis: Key Levels to Watch

From a chart perspective, XRP is consolidating within a symmetrical triangle pattern on the daily timeframe, presenting a defined, albeit waiting, game.

• Immediate support resides around $1.80, with a stronger floor likely near $1.75.
• On the upside, buyers must first reclaim approximately $1.94 to neutralize the short-term bearish bias, with a subsequent target near $2.15.
• The oversold RSI aligns with a market where selling exhaustion is present, but fresh upward momentum has yet to materialize.

At its current price of $1.83, XRP trades just above its recent 52-week low of $1.81 and roughly 13% below its 50-day moving average of $2.10—hallmarks of an advanced correction phase.

Conclusion: A Divergence Between Price and Fundamentals

As of December 27, 2025, XRP exemplifies a classic divergence between short-term price action and underlying network strength. The price near yearly lows, an oversold RSI, and a cautious market mood reflect immediate skepticism. However, this contrasts sharply with approximately 170,000 daily active users, over $1.25 billion in ETF holdings, and an expanding ecosystem centered on the RLUSD stablecoin.

The path forward will likely be determined by three critical factors: the defense of the $1.80 support level, the continuation of strong ETF inflows, and the maintenance of robust XRP Ledger usage—as measured by active addresses and RLUSD volume—into the new year.

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