XRP On-Chain Velocity Reaches Yearly High as Network Activity Soars

XRP has successfully regained the $2.10 mark following a substantial bounce in the broader cryptocurrency market. This rebound signals increased confidence after a period marked by fear, volatility, and notable price declines. Analysts are optimistic about the potential for a lasting recovery as market momentum returns and buyers show renewed interest. This critical price point has traders eagerly observing if XRP can build enough strength to confront higher resistance levels in the coming sessions.

Key Takeaways

XRP has regained the $2.10 level, signaling renewed confidence in the market.
XRP Ledger Velocity has surged to a yearly high of 0.0324, indicating increased market activity.
The network is witnessing heightened participation from traders and active users.
XRP is navigating significant resistance as it attempts to stabilize following a downtrend.
User engagement on the XRP Ledger is at an annual peak, hinting at potential market movements.

In addition to this optimism, a recent report from CryptoOnchain on CryptoQuant reveals a significant spike in XRP Ledger Velocity, an important on-chain indicator for 2025. On December 2, the Velocity metric soared to 0.0324, marking its highest reading of the year. Velocity reflects how frequently XRP is traded across the network, offering insight into economic activity, liquidity, and transaction demand.

This sharp increase in Velocity demonstrates that XRP is actively circulating among users rather than remaining stagnant in wallets. It showcases the heightened participation of traders, active holders, and possibly even whales, indicating greater engagement on the network.

Surge in Network Activity as Velocity Indicates Increased Engagement

According to the report from CryptoOnchain, the latest increase in XRP Ledger Velocity illustrates a significant shift in how XRP is utilized within the network. Rather than being stored in cold wallets or reserved for long-term holding, XRP is now frequently exchanged among market participants. This level of circulation implies that traders, active users, and potentially whales are contributing to transaction volumes that surpass normal levels.

XRP Ledger Velocity | Source: CryptoQuant

CryptoOnchain notes that a significant rise in Velocity generally signals high liquidity and extensive participation within the ecosystem. When coins move quickly, it suggests they are engaged in actual economic activities, such as trading, transfers, arbitrage, or rebalancing by larger holders. This behavior is often seen during times of increased volatility, speculation, or shifts in market sentiment.

Irrespective of whether prices trend upwards or downwards, the data indicates that the XRP Ledger is entering one of its most active phases in 2025. User engagement is at an annual peak, with more participants interacting with the network and more coins circulating than at any time this year. Such increased activity may precede or coincide with significant market movements, reinforcing the notion that XRP is evolving into a more dynamic and liquid asset as its recovery progresses.

XRP Confronts Significant Resistance Amid Weak Daily Structure

On its daily chart, XRP displays an attempted recovery toward the $2.15–$2.20 range, but the overall structure continues to be pressured by a persistent downtrend. Following a sharp sell-off in late October and November, which drove XRP below the $2.00 threshold for the first time in months, the asset is working to stabilize. The recent bounce reflects short-term buying interest; however, the price remains below all major moving averages, indicating that bullish sentiment has not yet regained control.

XRP testing key resistance | Source: XRPUSDT chart on TradingView

The 50-day Simple Moving Average (SMA) currently slopes downward near $2.35, acting as immediate resistance. The 100-day SMA around $2.55 and the 200-day SMA near $2.60 create a stacked barrier above the price, confirming an overall bearish setup. For XRP to generate significant upside momentum, it must reclaim the 50-day SMA and turn it into support—something it has not achieved since late September.

Currently, support holds steady around the $2.00–$2.05 range, where buyers have consistently defended this level with long lower wicks. A fall below this area could expose XRP to deeper losses towards $1.80. Meanwhile, trading volume remains low, suggesting that the current rebound lacks strong conviction.