XRP is moving ahead of bitcoin and ether as traders return to the market and buy the dip after the recent crash. The rebound looks stronger in XRP because demand picked up quickly, while supply on exchanges appears to have tightened.
XRP Gains Momentum After the February Dip
The payments-focused token XRP has climbed steadily since early February, as bargain hunters looked for better entry points. After hitting a low on February 6, XRP rallied about 38% to around $1.55. It also gained more than 5% in the last 24 hours, showing that short-term buying pressure remains active.
XRP Beats Bitcoin and Ether on the Rebound
XRP’s performance stands out because bitcoin and ether have risen by roughly 15% since February 6—solid gains, but still far behind XRP’s pace. Recently, bitcoin traded near $69,420, while ether hovered around $2,020. This gap highlights how aggressively traders have rotated into XRP during the recovery phase.
Exchange Reserves Drop Signals Accumulation
One reason XRP may be rising faster is stronger dip-buying activity on major exchanges after the crash. Data indicates that XRP balances on Binance fell sharply between February 7 and 9, dropping by about 192 million XRP to roughly 2.553 billion. That decline pushed exchange-held XRP to the lowest level since January 2024, and the balance has stayed fairly steady since then.
In crypto markets, falling exchange reserves often suggest accumulation. Many investors move coins into personal wallets when they plan to hold longer, rather than leaving them on an exchange for quick trading.
Why Lower Supply can Support a Price Rally
When large withdrawals happen in a short time, the available supply on exchanges can shrink. With fewer coins immediately available to sell, even moderate buying can push prices higher. This supply squeeze effect can add extra strength to a rebound—especially when market sentiment improves at the same time.
A Similar Pattern Showed up Before
Historical trends support this idea. In the last two months of 2024, XRP surged from about $0.60 to above $2.40 while exchange balances were falling quickly. While past moves do not guarantee future results, the pattern shows how reduced exchange supply can line up with strong price rallies.
