XRP Price Drops to $1.22, But Ledger Velocity Hits Yearly Highs: Is a Breakout Looming?

XRP Holds Relative Strength Amid Market Downturn: Rising Ledger Velocity Signals Network Resilience

Ripple's XRP faces ongoing price pressure in a broadly bearish crypto environment, yet underlying network metrics tell a more constructive story. While major assets like Bitcoin and Ethereum grapple with extreme fear, XRP benefits from comparatively optimistic trader sentiment and surging activity on the XRP Ledger.

This divergence raises the possibility of XRP decoupling for a short-term relief move if broader conditions stabilize.

XRP Sentiment Stands Out Positively

Santiment data highlights XRP's resilience in trader outlook. The positive-to-negative sentiment ratio for XRP remains elevated, reflecting a more bullish bias compared to the deeply negative readings dominating Bitcoin and Ethereum.

Social media mentions show XRP scoring significantly higher on optimism—around 2.19 on Santiment's indicator—versus Ethereum's 1.08 and Bitcoin's 0.80. This positions XRP traders as notably less fearful amid the recent sell-off.

Markets frequently move counter to extreme retail disbelief, and Santiment suggests this setup could support a short-term bounce or independent performance for XRP once panic subsides.

Ledger Velocity Reaches Yearly Highs

On-chain activity provides further encouragement. The 7-day simple moving average (SMA) of XRP Ledger Velocity climbed to 0.013 on February 3, 2026, retesting the upper bound of its one-year range and matching peaks last seen in January 2025.

Velocity measures how frequently tokens change hands, indicating heightened network turnover. Spikes during downtrends often reflect older coins circulating or intensified short-term trading and repositioning.

This resurgence in usage underscores sustained demand for the ledger's fast, low-cost transactions, even as price action weakens. It points to real utility driving circulation rather than pure speculation.

Current Price Action and Technical Setup

XRP trades around $1.22 to $1.30 as of February 5, 2026, following a sharp 16-20% drop in the past 24 hours amid intensified market-wide selling. The token has declined from above $2.30 earlier in the year, now sitting below the midline of its Bollinger Bands with the lower band expanding—classic signs of volatility and downside momentum.

Technical indicators reflect ongoing pressure:

• RSI approaches oversold levels, suggesting potential exhaustion but not yet confirming reversal.
• MACD remains bearish, with downside momentum persisting.

XRP must first halt its decline and reclaim short-term levels to build a base. Failure here could extend losses, while stabilization might align with rising network signals for upside.

Why This Divergence Could Matter

XRP's relative outperformance in sentiment and ledger metrics stands in contrast to the capitulation seen across the sector. High velocity amid weakness often signals supply redistribution to committed holders, setting the stage for recovery when demand returns.

If Bitcoin and Ethereum stabilize or rally modestly, XRP's constructive fundamentals could amplify gains. Institutional interest in Ripple's payment solutions, combined with ledger growth, adds long-term tailwinds.

For now, the token remains under pressure, but the combination of resilient sentiment and peak network activity offers a counter-narrative to the broader bearish mood. Traders watch for price to find support—potentially near recent lows—as a catalyst for rebound potential in this volatile phase.

The XRP Ledger's renewed intensity highlights enduring ecosystem strength, even if price lags. Sustained activity could position XRP for outperformance once market fear eases.

Oleg Dimitrov publication: "XRP Price Drops to $1.22, But Ledger Velocity Hits Yearly Highs: Is a Breakout Looming?" was written for 24crypto.news

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