XRP Price Reclaims $3, What Next Amid XRPL Q2 Outlook?

XRP price moved back above $3 in late August 2025 after forming a bull flag pattern on the daily chart.

While the chart pointed to a possible breakout, whale selling and weaker activity on the XRP Ledger added caution.

A new quarterly report showed growth in stablecoins and upgrades but mixed network use.

XRP Price Chart Points to Possible Breakout

XRP held steady above $3 as traders watched a bull flag take shape on the daily chart. A bull flag often signals that prices could continue higher after a period of consolidation.

Market analyst Rose Premium Signals marked potential targets at $3.6234, $3.8608, and $4.1066 if the breakout from this bull flag is confirmed.

The price move came after XRP posted gains through the second quarter.

By the end of Q2, its market capitalization reached $132 billion, an 8.5% increase from the previous quarter.

The rise in value placed XRP as the fourth-largest cryptocurrency by market cap. The return above $3 was seen as an important level, but traders remained watchful.

While the chart showed a bullish formation, the wider market backdrop was less certain. Some data pointed to selling pressure from large holders that could limit near-term gains.

Whale Activity Creates Selling Pressure

On-chain data suggested that XRP whales were selling during the same period. Analyst Maartunn said distribution from large wallets was clear and ongoing.

Heavy selling by whales often weighs on prices, even when charts point to possible gains.

This trend came as network activity slowed in the second quarter. Average daily active addresses dropped 41.2% from the previous quarter to 75,200.

New addresses also fell 46.2% to 305,800. The numbers showed a decline in both new and existing users after two straight quarters of growth.

Despite the short-term drop, yearly comparisons were stronger. Active addresses rose 165.5% from a year earlier, while new addresses increased 219.8%.

This suggested that over the longer term, more people were using the ledger than in 2024.

Meanwhile, the system of monthly escrow releases continued. One billion XRP was released to Ripple each month, with unused tokens placed back into new escrow contracts.

This supply release balanced the small amount of XRP permanently burned through network fees. Since launch, 14.1 million XRP had been burned, worth about $31.7 million by the end of Q2.

Ledger Growth Shows Mixed Picture

The latest quarterly report from Messari has placed the XRP Ledger in focus.

Ripple’s dollar-pegged stablecoin, RLUSD, ended the quarter with a $65.9 million market cap, making it the largest stablecoin on the ledger.

Other issuers also launched tokens, including USDC and EURØP. In total, the market cap of issued currencies on XRPL rose 35.7% to $382 million.

The report also noted key upgrades. The XRPL EVM Sidechain went live on June 30, bringing Ethereum compatibility.

New features included permissioned decentralized exchanges and TokenEscrow support in Rippled V2.5.0. These changes aimed to expand what developers could build on the ledger.

Even with these updates, activity levels fell. Average daily transactions dropped 20% to 1.6 million.

Payment transactions made up 60.2% of activity, while OfferCreate orders, which set trades on the order book, fell to 29.6%.

The numbers showed that while the network continued to expand, immediate user activity slowed.

The ledger closed the quarter with 1,008 nodes and 187 validators. More than 58% of nodes have been upgraded to the new software version.

The report also mentioned a security breach in April, when a Ripple employee was targeted in a phishing attack. The issue was resolved, and users were advised to rotate keys if affected.