XRP Velocity Hits 1-Year Peak: Possible Impact on Price

Amid the ongoing price downtrend, the $XRP token velocity has spiked to a 1-year peak, as investors continue to look out for a price recovery.

$XRP has stayed under pressure as weakness spreads across the broader crypto market. At press time, the token trades at $1.47, extending a decline that now places it 43% below its 2026 high of $2.41. $XRP reached that peak during the early-year rally before market sentiment turned sour.

The selling pressure has now intensified in February, as $XRP loses all important support levels above $1.4. Meanwhile, network data indicates that $XRP’s token velocity has now soared to 0.013, representing a new 1-year peak, amid the current price struggles.

Key Points

• $XRP has dropped to a price of $1.47, marking a decline of more than 43% from its 2026 high of $2.41 reached earlier in the year.
• As the price declines, token velocity on the $XRP Ledger has climbed to a one-year peak of 0.013, matching levels last seen in January 2025.
• High velocity indicates rapid token circulation, due to active trading, holder repositioning, or increased payment and settlement usage on the network.
• Bullish interpretations of this high velocity suggest that the heavy circulation may lead to a trend reversal.
• However, there are warnings that rising velocity during a downtrend reflects distribution, which could exert more selling pressure.

$XRP Token Velocity Reaches a One-Year High

On-chain analytics from CryptoQuant show that $XRP token velocity has jumped to 0.013, the highest level recorded in a year. Notably, $XRP last saw similar velocity readings in January 2025.

$XRP Velocity CryptoQuant” src=”https://cnews24.ru/uploads/cc0/cc0b17cb5624cd0059ac1c211dcba7d497d83581.jpg” alt=”$XRP Velocity CryptoQuant”> $XRP Velocity | CryptoQuant

For the uninitiated, token velocity tracks how quickly coins move across the network compared to total supply. Market technicians often come up with the value by dividing transaction volume by market cap over a particular period.

Notably, a rising velocity means tokens change hands more often instead of sitting idle in wallets. With $XRP, the surge points to heavy on-chain movement, which could come from active trading, holder repositioning, or growing use of the $XRP Ledger for payments and settlements.

Bullish Case for a Spike in $XRP Token Velocity

It is believed the rise in token velocity is a potential early signal of a market recovery. Past cycles show that sharp increases in circulation often appear near major turning points, when aggressive selling exhausts supply and opens the door for reversals.

From this perspective, the current phase may indicate redistribution, where stronger hands accumulate $XRP at lower prices. For instance, when token velocity spiked above 0.011 in July 2025, it coincided with an $XRP recovery from its downward trend to the $3.66 peak that month.

This commentary came on the back of $XRP ETF data shared by Chad Steingraber, an $XRP community figure. Notably, the data shows steady ETF-related volumes, including about $10 million in volumes yesterday. According to him, Bitwise contributed the most to these figures.

At the 11 O-clock hour… $XRP ETF’s sit at $10Million.

Bitwise again is seeing the biggest volume and single minute buy spikes. These larger spikes are institutional engagement, while “retail” is the small steady volume. https://t.co/hfkbPIm6VI pic.twitter.com/hwDHRU1njS

— Chad Steingraber (@ChadSteingraber) February 4, 2026

Important Caveat

However, it is important to note that rising velocity during a price decline may actually indicate distribution. Notably, the current situation represents a high-friction event amid downtrends, where rapid token movement shows $XRP holders rushing to exit positions. Data from Coinglass shows a drop in futures open interest, confirming a possible decline in positions.

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