Anticipated Performance of XRP in May 2025: A Closer Look

Anticipated Performance of XRP in May 2025: A Closer Look

XRP's Spring Surge: May 2025 Brings Potential Big Moves

XRP's gaining a solid 7% over April's final week, but the real fireworks could blast off in May! Key metrics like the NUPL and active addresses show a market poised on the cusp of monumental moves.

Hype about ETF approvals is ramping up the volatility, and legitimate institutional investment could decide XRP's next big trend. Investors should buckle up, as both massive rallies and steep corrections are still squarely on the table.

XRP: Betting Green but Watch out for Volatility

XRP's Long-Term Holders Net Unrealized Profit/Loss (NUPL) now rests at an eager 0.73—pushing it into the "Belief – Denial" zone of the market cycle. This figure reflects the average unrealized profit among long-term XRP holders.

Since March 27, XRP's NUPL has persistently hovered in this area. Normally, NUPL values above 0.75 indicate a "Euphoria-greed" situation.

Readings between 0.5 and 0.75 signify confidence that prices will rise; however, there's also the risk of denial if momentum falters.

In the last three weeks, XRP holders' paper gains have noticeably climbed, with the NUPL jumping from 0.68 to its current 0.73. But the market could soon face a critical juncture where either continuation or a correction emerges.

Recent XRP ETF rumors have stirred confusion, adding more volatility to the market. In reality, only ProShares' leveraged and short XRP Futures ETFs were approved for trading on April 30.

A true spot ETF hasn't yet received the green light. Although the futures approval is viewed as a step forward for XRP's long-term legitimacy, the spread of unsubstantiated information has shaken investor confidence and fuelled market unpredictability.

Rumor Mill Churning: XRP vs. Ethereum and SWIFT Partnerships

Experts speculate that XRP's market cap could outpace Ethereum's in the near future. Chatter surrounding a potential XRP and SWIFT partnership has gained traction in recent weeks.

Some analysts predict that a future spot ETF could draw up to $100 billion in capital inflows into XRP. However, until a spot ETF is approved, price volatility stemming from misinformation and rumors will linger.

Active Addresses Tumble: Network Pulse Weakens

XRP's active addresses have plummeted significantly, with a current count of 147,000—far from the all-time high of 1.22 million reached on March 19.

This precipitous decline hints at a broader slowdown in network activity following the escalated surge experienced earlier this year. Monitoring active addresses offers real-time insight into user engagement, transaction volume, and overall ecosystem health.

Since April 1, XRP's active address count has consistently lagged below 200,000, suggesting a sluggish recovery in user activity. While this decline doesn't signal an imminent massive price collapse, it highlights an essential point: strong rallies often go hand-in-hand with an uptick in active addresses.

XRP ETF Approval: The Wild Card

A Spot XRP ETF final approval would likely serve as a significant catalyst for the token's price, potentially unleashing considerable institutional inflows. The world's first XRP ETF recently debuted in Brazil.

If real demand follows the approval like it did with Bitcoin, XRP's price could skyrocket dramatically. The next major target could be around $3.40, representing a massive 49% increase from the current prices.

However, if the momentum falters and a strong downturn takes hold, XRP could suffer a severe correction. A dip below the psychological $2.00 level would open the door to deeper losses, with the next major support around $1.61.

In this bear market scenario, XRP might find itself locked in a broader consolidation or bearish phase until fresh catalysts emerge.

Disclaimer

Remember! This digital asset price analysis article serves as educational content and shouldn't be misconstrued as financial advice. BeInCrypto is dedicated to delivering informed, unbiased reporting. The crypto market shifts rapidly, so always double-check your information and consult a financial expert before making a decision. Important disclaimers and policies have been updated on our site.

Sources:1. CoinGecko XRP Price Analysis2. XRP Insights3. XRP News Today4. The Capital5. XRP vs. Bitcoin Indicators

1. The Long-Term Holders Net Unrealized Profit/Loss (NUPL) of XRP has surged to 0.73, positioning it in the "Belief – Denial" zone, signifying that prices may rise but also hinting at the risk of denial if momentum falters.
2. Since March 27, XRP's NUPL has consistently hovered in the "Euphoria-greed" range, indicatingconfidence that prices will rise, but requiring participants to exercise caution as a correction might occur.
3. XRP's market cap could potentially overtake Ethereum's in the near future as experts speculate about a potential XRP and SWIFT partnership.
4. The approval of a true spot ETF could inspire up to $100 billion in capital inflows into XRP, but in the meantime, volatility persists due to rumors and misinformation.
5. XRP's active addresses have significantly dropped to 147,000 from the all-time high of 1.22 million on March 19, indicating a slower network activity.
6. Monitoring active addresses can offer real-time insights into user engagement, transaction volume, and overall ecosystem health.
7. A Spot XRP ETF final approval could serve as a significant catalyst, potentially triggering institutional inflows, while a sharp downturn could result in severe corrections even below the psychological $2.00 level.
8. Institutional investment, ETF approvals, and technology advancements in the crypto market continue to influence market trends and instability, making it crucial for investors to stay informed and monitor market developments closely.

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