XRP On-Chain Velocity Hits Yearly High As Network Activity Explodes XRP has recently clawed back to the $2.10 mark, signaling a significant resurgence in market confidence after a period marked by volatility and sharp pullbacks. This rebound is underpinned by an explosive surge in on-chain activity, reaching levels not seen throughout 2025, painting a picture of renewed engagement and transactional demand for the digital asset.
Network Activity Surges to Peak Levels
A recent report by CryptoOnchain on CryptoQuant reveals that the XRP Ledger Velocity metric soared to an annual high of 0.0324 on December 2nd. This metric, which measures how frequently XRP moves across the network, serves as a crucial indicator of economic activity, liquidity, and transactional demand. The dramatic increase signifies that XRP is circulating rapidly among participants, rather than remaining dormant in wallets. This heightened circulation suggests increased participation from traders, active holders, and potentially even large-scale investors (whales), all contributing to an invigorated network environment. The surge in velocity indicates that the XRP Ledger is currently experiencing one of its most active phases in 2025. This intense level of user engagement, with more coins actively changing hands and interacting within the ecosystem, often precedes or accompanies significant market movements, highlighting a dynamic shift in how XRP is being utilized.
XRP Faces Key Resistance Amidst Recovery Efforts
Despite the impressive on-chain activity, XRP's daily chart shows it grappling with a challenging technical landscape. While there's an evident attempt to rebound towards the $2.15–$2.20 range, the broader market structure remains under pressure from a persistent downtrend that began with a sharp sell-off in late October and November. This past volatility pushed XRP below the crucial $2.00 level for the first time in months. Currently, XRP trades below all major moving averages, including the 50-day Simple Moving Average (SMA) at approximately $2.35, which acts as immediate resistance. Further structural barriers exist around the 100-day SMA near $2.55 and the 200-day SMA close to $2.60, forming a stacked bearish resistance zone. For XRP to establish a meaningful upward momentum, it must decisively reclaim and convert the 50-day SMA into support, a feat it has not achieved since late September. Meanwhile, critical support holds steady between $2.00 and $2.05, an area repeatedly defended by buyers, though muted trading volume suggests that strong conviction for a sustained rally has yet to fully materialize.
