Key facts
- XRP experienced a weekly gain of approximately 30%, trading near $1.29.
- Bitcoin surpassed $72,000, influenced by a significant short squeeze.
- The U.S. Treasury plans to double long-bond buybacks starting September 9.
- XRP's daily gain on Wednesday was 10.40%, the largest since February 6.
- Despite XRP's outperformance, its ETF inflows decreased, while Bitcoin ETFs saw substantial gains.
XRP has experienced a significant rally, gaining approximately 30% for the week and trading near $1.29. This surge marks its strongest performance in months and is attributed to Bitcoin's break above $72,000, which was fueled by a record short squeeze and a U.S. Treasury announcement to double long-bond buybacks starting September 9. The Treasury's plan is expected to inject liquidity into the market, potentially contributing to the broader crypto rally.
On Wednesday alone, XRP saw a 10.40% increase, its most substantial daily jump since February 6. The momentum carried into Thursday, extending the weekly gains. However, despite XRP outperforming Bitcoin during this period, its own ETF inflows reportedly fell on the day of the spike, while Bitcoin ETFs attracted significant capital. Furthermore, XRP's futures open interest has decreased by over 11% from its peak during the rally.
The Relative Strength Index (RSI) for XRP has spiked to 79.2, indicating it is in overbought territory, while the Average Directional Index (ADX) score above 29 suggests strong trend strength. The asset is still trading approximately 17.5% below its 200-day moving average, suggesting that sustained gains will be necessary to confirm a long-term trend reversal.