The Signal Ripple Holders Have Been Waiting for as Cooling Phase Fades

XRP sits around $2.00 as of now, but is another rally brewing?

Ripple’s XRP, alongside the rest of the cryptocurrency market, went through the wringer in the past few months, but there’s some hope on the horizon.

Data shared by popular analyst CW shows that the XRP spot volume has calmed lately, which, history suggests, could mean a price bottom and a subsequent rally.

The $XRP spot volume bubble map shows the current state of cooling.

In general, cooling phase indicates oversold and it is most appears in the bottom state.$XRP ETFs are being continuously listed, and global liquidity is increasing. With the continued listing of ETFs, $XRP is… pic.twitter.com/tfkW8ZsfFr

— CW (@CW8900) December 2, 2025

The bubble map above aligns with previous reports indicating that the overall market calamity that took place since early October has mostly been influenced by leveraged trading.

For XRP, in particular, this map shows that when the spot volume overheats (red dots), the asset enters a prolonged correction phase. However, this hasn’t been the case for the past few months, as the last sizeable red dots came after the late 2024/early 2025 rally to $3.40.

Consequently, CW determined that the current spot volume levels mean XRP is in a “state of cooling,” which “indicates oversold” and has historically appeared during the price bottom phases.

The analyst believes this period won’t last long as new XRP ETFs launch almost every week and the inflows are quite impressive. In fact, the spot Ripple funds have performed a lot better than their BTC, ETH, and SOL counterparts since the first one hit the US markets in mid-November.

You may also like:

CW added that global liquidity is increasing, which, alongside the growing inflows into the spot XRP ETFs, could result in a significant price expansion for the underlying token. For now, though, XRP remains just inches above the pivotal $2.00 support. It’s still in the red on a yearly scale, although the company behind it has recorded its best year to date.