Payment focused cryptocurrency XRP rising faster than bitcoin and ether after investors hunted for bargains following the early month crash.
XRP’s price has risen 38% to $1.55 since hitting a low of $1.12 on February 6, according to CoinDesk data. In the last 24 hours alone, prices have increased by more than 5%.
This performance puts it well ahead of both bitcoin and ether, which have recovered around 15% since February 6. At the time of writing, bitcoin and ether changed hands at $69,420 and $2,020 respectively.
XRP’s bitcoin-beating rally tracks signs of dip-buying on Binance after the February 6 crash. CryptoQuant data indicates that Binance’s XRP reserves fell sharply by 192.37 million XRP to 2.553 billion between February 7th and 9th. The 7% drop marked the lowest level since January 2024, and inventories have been stable since then.
Analysts typically associate a decline in foreign exchange balances with investor accumulation. The logic is that investors prefer to take coins into custody instead of keeping them on exchanges when they intend to hold them for the long term.
Sudden, sharp withdrawals can reduce the available supply and open the door to a price increase. Historical trends reinforce this view. XRP surged from $0.60 to over $2.40 in the last two months of 2024 as the balance on exchanges slid faster.
