XRP is exhibiting significant momentum in the cryptocurrency market, sharply outperforming major assets like Bitcoin and Ethereum. The token's price has risen approximately 5% in the last 24 hours to around $1.53-$1.55, marking a substantial 38% surge from its low on February 6. This rally stands in stark contrast to Bitcoin and Ether, which have posted gains closer to 15% over a similar period.
The primary driver behind the breakout is a surge in genuine spot buying activity. XRP's 24-hour trading volume skyrocketed more than 86% to roughly $5.36 billion, indicating the price increase is backed by real market demand and accumulation by investors, rather than being fueled primarily by leveraged derivatives trading. This volume-supported breakout is often a foundation for sustained short-term strength.
Analysts point to a capital rotation from major cryptocurrencies into altcoins as a key supporting factor. Market data shows the dominance of smaller cryptocurrencies (the "others" category) increased from 28.54% to about 31.45% over the past month. This shift suggests investors are moving funds from Bitcoin and Ethereum into alternative tokens like XRP, a trend potentially exacerbated by recent outflows from Bitcoin ETFs.
Further fueling the bullish narrative are signs of a potential supply shock. Data reveals Binance's XRP reserves dropped by approximately 192.37 million tokens (a 7% cut) between February 7 and 9, bringing total exchange holdings down to 2.553 billion—levels not seen since early 2024. Such rapid withdrawals from exchanges often indicate larger players are moving coins into cold storage, a pattern that preceded XRP's major rally from $0.60 to $2.40 in late 2024.
From a technical perspective, XRP's move above the key psychological level of $1.50 is significant, as this area had previously acted as resistance. Traders are now watching the $1.45–$1.50 zone as crucial support. If this level holds, the next upside targets are near $1.60–$1.65, with a major resistance level at $1.91. A clean break above $1.91 could open a path toward the prior cycle high of $2.40, a target already being priced into options markets.
The short-term outlook remains contingent on maintaining buying activity and defending key support. Experts warn that upcoming macro events, including the release of Fed minutes and Core PCE data, could inject volatility into the entire market. However, if XRP can defend the $1.45 zone during potential market chaos, it would signal underlying strength and keep the bullish $2.40 target in play.
