Ripple’s native token, XRP, has reclaimed its position as the third-largest cryptocurrency by market capitalization, surpassing Tether (USDT) for the first time since early 2021. This move represents a significant milestone for XRP, signaling not only renewed investor interest but also a potential shift in market dynamics favoring the token. Trading around $2.49 at press time, with recent highs touching $2.60, XRP’s price performance is now being backed by several positive on-chain developments, giving investors reasons to believe that this resurgence might be more than a temporary spike.

The renewed momentum comes amid broader optimism about regulatory clarity in the United States. A notable example is Missouri’s proposed House Bill 594, which aims to allow full income tax deductions on capital gains from digital assets, including XRP. If passed, this legislation could pave the way for greater retail and institutional adoption, particularly in jurisdictions seeking to position themselves as crypto-friendly hubs. These macro-level developments align well with Ripple’s vision of building a sustainable, regulatory-compliant ecosystem that integrates blockchain solutions into global finance.

Beyond regulatory optimism, on-chain metrics show interesting trends in XRP’s activity. Data from CryptoQuant highlights that while total whale flow remains in negative territory, the 30-day moving average (30DMA) of whale activity is now curling upward. This represents a significant shift from previous months where XRP experienced some of the steepest whale outflows seen since early 2023. These outflows had pressured prices and dampened sentiment, but the recent stabilization suggests that selling fatigue may be setting in. Historically, such a slowdown in whale outflows has often marked the beginning of a base-building phase—one that precedes sustainable rallies.

Another notable signal comes from the reactivation of long-dormant whale wallets. These wallets, inactive for years, are now showing signs of movement, often seen as a precursor to increased accumulation. While this does not guarantee an immediate price spike, it reflects growing confidence among large holders in XRP’s longer-term potential. It also suggests that whales may be strategically positioning themselves ahead of a broader market move, possibly anticipating regulatory clarity or major ecosystem announcements.

In tandem with whale behavior, XRP’s real-world utility continues to expand. For instance, its recent listing as a payment method on Travala, a major travel booking platform, has reinforced its relevance beyond speculative trading. Additionally, the number of XRP wallet holders has increased by over 11% in 2025 alone, underlining rising retail interest. This growing user base supports a more decentralized and diverse holder distribution, which could help buffer price volatility and strengthen the network’s resilience.

Despite these bullish developments, XRP still faces key technical and psychological resistance levels. The $2.60 zone remains a crucial threshold. A decisive breakout above this level, backed by strong volume and deeper liquidity, would indicate robust demand and open the door for further upside. Until then, XRP remains vulnerable to corrections, especially if broader market sentiment shifts or Bitcoin enters a period of consolidation. However, as long as the 30DMA of whale flow trends upward and dormant wallet activity remains elevated, the likelihood of a deeper downtrend diminishes.

In summary, XRP’s return to the number three spot in the crypto rankings is more than symbolic—it reflects improving fundamentals, increased utility, and a changing narrative around its market prospects. The combination of easing whale outflows, rising on-chain activity, and potential regulatory tailwinds paints a cautiously optimistic picture for the token. If current trends continue, and XRP can break above the key $2.60 resistance with conviction, it may be on the verge of entering a new phase of sustained growth. Investors and traders alike should watch key metrics like whale flow, wallet activity, and liquidity levels to gauge whether this rally has the strength to evolve into a full-fledged breakout or remains just another temporary surge in an otherwise volatile market.