Payments-focused cryptocurrency XRP is rising faster than bitcoin and ether as investors hunt for bargains following a price crash earlier this month.
XRP’s price has rallied 38% to $1.55 since hitting a low on Feb. 6, according to CoinDesk data. The price has jumped by more than 5% in the past 24 hours alone.
This performance puts it well ahead of both bitcoin and ether, which have gained roughly 15% since Feb. 6. Bitcoin and ether recently changed hands at $69,420 and $2,020, respectively.
XRP’s bitcoin-beating rally tracks signs of dip-buying on Binance following the crash. CryptoQuant data indicates Binance’s XRP reserves dropped by 192.37 million XRP to 2.553 billion between Feb. 7 and 9. The 7% slide marked the lowest level since January 2024, and holdings have remained stable since then.
Analysts typically associate a drop in exchange balances with investor accumulation. The logic is that investors prefer to take direct custody of coins rather than keep them on exchanges when they plan to hold them long-term.
Sudden, sharp withdrawals can reduce available supply, opening the door to a price rally. Historical trends reinforce this view. XRP rallied sharply from $0.60 to over $2.40 in the final two months of 2024 as the balance held on exchanges slid faster.
Read More: XRP investors likely bought the dip after the recent crash
