Key Highlights
- On February 6, 2026, 939 XRP were burned as transaction fees, up over 67% in three days, showing higher network use.
- Despite higher burn activity, XRP is down 14% in a week, trading around $1.39, with trading volume falling 45%.
- About $25 million was liquidated in 24 hours, while open interest and futures volume dropped.
XRP has seen a big jump in its burn rate, reaching its highest level so far in 2026. On February 6, 2026, a total of 939 XRP were burned as transaction fees on the XRP Ledger, according to data from CryptoQuant.
This marked a steep increase from the 523 XRP burned just three days earlier, representing a jump of more than 67% in a short period.
Burning XRP means that the tokens are permanently removed from circulation. They are used to pay transaction fees, and once burned, they cannot be used or traded again. A higher burn rate shows that more XRP is being actively used on the network. It also reduces the total supply of XRP, which can affect the market if demand continues to grow.
XRP recovers after dropping 14% in a week
The surge in XRP burn rate followed a period of heavy selling pressure that pushed XRP to levels last seen in 2023. During that time, network activity was slower and fewer transactions were happening. As more people started sending XRP and paying fees again, the burn rate rose, showing that users were more active on the network.
Currently, the token is trading for $1.39, a 1.88% drop in the last 24 hours. The token has had a bloody week, with its price going as low as $1.10 on Friday before recovering briefly. So far, the token has lost 14% in a week. Trading activity is down by 45% to $7.96 billion in trading volume, while the market cap sits at $85.24 billion.
The broader market selloff earlier in the week pushed traders into defensive positions.
XRP price broke through key support levels, which triggered a wave of liquidation in the market. That increases sales momentum.
According to Coinglass, about $25 million was wiped out of the market in the last 24 hours. $13 million of that total came from long positions, while $11 million came from short position trades.
Meanwhile, the token’s open interest is down 5.01% to $2.52 billion, while its future trading volume has fallen 77% to about $6.09 million. This suggests that traders are currently staying clear of the market and awaiting buying opportunities.
Can XRP price recover?
The sell momentum this week pushed XRP down below the $1.78 support level, which had held the price up for a very long time. Following this, the market tanks to the next support level at $1.50 as traders panic.
However, this support level was unable to hold. XRP consolidated for a while between February 1 and February 3 and broke the level as well. Current price action shows the price recovering a bit to the support-turned-resistance level after it reached an oversold level.
But the price seems to be rejecting the resistance level as its 4-hour candles trade downward. However, on the lower time frame, the price is displaying a pennant flag pattern. A break above this pattern could spark a rally back to the $1.78 resistance level or even further to the $2.41 resistance. On the other hand, if the price gets rejected further, the downtrend could continue.
Moreover, the Relative Strength Index (RSI) is at 34, while the moving average is at 26. This means the price is in an oversold condition, and buyers could take over soon.
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