XRP Price Outlook in May 2025: Between Optimism and Challenges
Entering May 2025, XRP is showing impressive performance with a 7% price increase in the final week of April.
However, market indicators suggest that the asset is at a crossroads, with the potential for either a continued rally or a significant price correction.
NUPL Indicator Reflects Investor Confidence
According to information cited from Beincrypto, the Net Unrealized Profit/Loss (NUPL) for long-term XRP holders currently stands at 0.73, placing it in the “Belief – Denial” phase of the market cycle.
This indicates that many investors are seeing unrealized gains, but also highlights the potential risk if market momentum weakens.
Decline in Network Activity
Despite the price increase, the number of active XRP addresses has dropped below 200,000.
This decline may signal weakening network engagement, which could limit bullish momentum and add downward pressure on price if no positive catalysts emerge.
Potential Impact of XRP ETF Approval
Rumors surrounding the approval of a spot XRP ETF by the SEC have added to market volatility. If the ETF is approved, analysts predict that XRP’s price could surge by up to 49% to reach US$3.40.
Conversely, if the approval does not materialize, the price risks dropping by 29% to a key support level at US$1.61.
Conclusion: Preparedness for Volatility
May 2025 is shaping up to be a critical month for XRP, with the potential for significant price movements.
Investors are advised to closely monitor market indicators and regulatory news, and to consider implementing appropriate risk management strategies in anticipation of heightened volatility.
