XRP News Today: XRP's Struggle to Compete Sparks Doubts Over 2025 Rally

XRP faces growing bearish signals in September, casting doubt on its ability to rally by 2025. Data from Binance indicates that XRP reserves on the exchange have surged to 3.58 billion tokens, a 12-month peak, signaling heightened selling pressure and weaker market demand [1]. This rise coincides with the token dropping below $2.74, a critical price level that had previously shown resilience. Analysts suggest that such a breakdown reflects a shift in short-term sentiment and could indicate a period of sideways movement or further price decline [1].

Whale activity provides a mixed signal. On September 5, large XRP transfers to Binance dropped to 1,588 tokens, significantly below the 30-day average of 4,715 tokens [1]. While this dip may temporarily ease selling pressure, it also suggests that large holders may have already moved their tokens in anticipation of price movement. In addition, XRP futures open interest stands at $7.43 billion, indicating a high number of active positions and potential volatility if these unwind. Coinglass data shows that this open interest level follows a recent high of $7.59 billion, with the spot price at $2.80 [1]. The combination of high leverage and a declining or flat price environment increases the likelihood of sharp price swings.

Meanwhile, broader challenges for XRP are emerging from within the DeFi ecosystem. The XRP Ledger (XRPL) faces an uphill battle compared to Ethereum, Solana, and other major blockchains. According to DeFiLlama, the TVL for XRPL is just $87.85 million, dwarfed by Ethereum’s $96.9 billion and Solana’s $11.27 billion. Daily decentralized exchange volume for XRP is below $70,000, while Ethereum’s is significantly higher [2]. TheBlock data further underscores XRP’s underperformance, showing that its futures open interest remains a fraction of Ethereum’s or Solana’s, indicating weak institutional participation and limited network effects [2].

Despite these challenges, Ripple has rolled out several upgrades to bolster the XRPL ecosystem, including automated market makers (AMMs) with new liquidity pools, the launch of RLUSD, and an EVM sidechain to improve compatibility with Ethereum-based applications [2]. However, industry experts argue that these developments must be paired with stronger retail and on-chain activity to attract enterprise adoption. Adam Kagy, co-founder of an NFT marketplace, emphasized that enterprises are unlikely to build on networks with minimal user engagement [2].

In a broader market context, XRP’s price has recently rebounded, trading at $2.81 at press time, with a 24-hour decline of 1%. Over the past week, the token has continued to trend lower, and analysts are closely watching the $2.85 level as a potential catalyst for short-term movement. If XRP closes above this threshold, it could see a rally toward $2.90, $2.95, and possibly $3.13. However, a failure to maintain this level risks a decline toward $2.65 [1]. With exchange reserves at yearly highs and whale flows mixed, the immediate outlook remains uncertain.

Source: [1] Ripple Price Bearish Warning: XRP Reserves Climb to ... (https://cryptopotato.com/ripple-price-bearish-warning-xrp-reserves-climb-to-highest-level-in-a-year/) [2] Now That XRP is Dead, What's Next? Swift Executive Calls ... (https://finance.yahoo.com/news/now-xrp-dead-next-swift-105438346.html) [3] XRP Gains Spotlight as Linea Boosts DeFi Incentives (https://coinfomania.com/xrp-linea-ignition-incentive-boost/) [4] Ripple (XRP) Price Moves Toward $3 as Community ... (https://finance.yahoo.com/news/ripple-xrp-price-moves-toward-215804400.html) [5] XRP Price News: Token Holds $2.88 as ETF Hype Fuels ... (https://www.fxempire.com/forecasts/article/xrp-price-news-token-holds-2-88-as-etf-hype-fuels-push-toward-3-00-1546776)