Key facts
- XRP price surged up to 14.21% in 24 hours, reaching $1.40.
- This marks the first daily close above both the 50-day and 200-day EMAs since XRP's death cross.
- The rally is fueled by a Bitcoin short squeeze and increased liquidity from U.S. Treasury bond buybacks.
- XRP was the best-performing asset among the top 10 cryptocurrencies by market cap.
- Technical indicators like RSI and ADX suggest strong upward momentum.
XRP experienced a substantial price increase, jumping as much as 14.21% in 24 hours to trade near $1.40, making it the top-performing asset among the ten largest cryptocurrencies by market capitalization. This surge allowed XRP to achieve its first daily close above both the 50-day and 200-day exponential moving averages (EMAs) since a bearish 'death cross' pattern formed earlier this month.
The broader cryptocurrency market is also having a strong week, driven by a significant short squeeze in Bitcoin, which pushed its price above $72,000 and intraday to $79,000. This rally is further fueled by a U.S. Treasury plan to nearly double its long-bond buybacks starting September 9, a move traders have dubbed 'QE Lite' due to its resemblance to past Federal Reserve stimulus measures. This has injected liquidity into risk assets across the board, with XRP seeing the most pronounced gains.
On a technical level, XRP's price action is significant. While the 50-day EMA remains below the 200-day EMA, indicating the death cross has not yet reversed into a 'golden cross,' reclaiming the space above these averages is seen as a crucial first step. Momentum indicators also support the breakout: the Relative Strength Index (RSI) is in deep overbought territory at 83.5, the Average Directional Index (ADX) confirms a strong trend above 25, and the Squeeze Momentum Indicator has flipped to 'off,' signaling that a volatility compression has already occurred and momentum is rising.
The positive market sentiment has also benefited Ripple, with a $275 million bond sale being lifted. Additionally, new SEC crypto exemption rules are reportedly in consideration. Notably, XRP is currently outperforming Bitcoin, which has yet to close above its own death cross lines, suggesting XRP is leading the current market movement.