Summary
- XRP soared by 14.21% within 24 hours, reaching $1.40, making it the top-performing cryptocurrency among the top 10 by market capitalization.
- For the first time since the recent bearish death cross, XRP's daily candle closed above both the 50-day and 200-day exponential moving averages (EMAs).
- This surge is part of a broader momentum driven by Bitcoin's short squeeze and increased liquidity from U.S. Treasury actions.
The cryptocurrency market is experiencing one of its strongest weeks in recent months, with XRP at the forefront.
This week, Bitcoin surpassed $72,000 due to a significant short squeeze, which occurs when traders betting on lower prices are forced to buy back at higher prices, thus driving the price up further. This surge was supported by a U.S. Treasury initiative that plans to nearly double its long-bond purchases starting September 9. Bitcoin is currently trading above $77,000, reaching an intraday high of $79,000.
Myriad: What’s next for XRP price? Make your prediction here.This movement has been dubbed "QE Lite" by traders, reflecting similarities to past Federal Reserve stimulus strategies, even though it originates from a different government sector. Risk assets have generally benefited, with XRP seeing the most significant gains.
On Friday, XRP opened at $1.2681, reached an intraday peak of $1.4300, and is currently trading around $1.40, marking a 10.52% increase for the day.
XRP price chart. Image: TradingviewReal-time data indicates a more substantial 24-hour increase of 14.21% and a weekly gain of 40.06%, solidifying XRP's status as the leading asset among the top 10 cryptocurrencies, outpacing Bitcoin's 7.44% and Ethereum's 4.50% increases.
Previously, XRP's price chart had been hindered by a death cross, a bearish indicator formed when the 50-day EMA falls below the 200-day EMA. Such a pattern typically signals a bearish trend. However, today’s candle not only reached that threshold but also closed above it, marking the first such closing since the formation of the death cross.
Despite this positive movement, the death cross itself has not been reversed, as the 50-day EMA remains below the 200-day EMA. Nevertheless, reclaiming price levels above both averages is often seen as a precursor to a potential bullish reversal.
Supporting this breakout, the Relative Strength Index (RSI) is at 83.5, indicating an overbought condition, suggesting that a price pullback could be possible. The Average Directional Index (ADX), which assesses trend strength, is at 32.4, well above the 25 threshold, confirming a strong trend, with buying momentum outpacing selling. Additionally, the Squeeze Momentum Indicator has signaled that volatility has already been released, indicating rising momentum.
XRP's notable performance this week is linked to Bitcoin's short squeeze, and it also coincides with a $275 million Ripple bond sale and new SEC exemptions for cryptocurrencies.
However, Bitcoin has not yet closed above its own death cross levels, meaning XRP is currently leading the market.
Key resistance levels to monitor include $1.43 (the day's high) and $1.60, which is near the upper boundary of a descending channel that has constrained XRP since late 2025. Support levels are at $1.34, followed by the golden zone between $1.0754 and $1.0965, with a deeper support at $0.9862. Significant upcoming events include the commencement of the Treasury's larger bond buybacks on September 9 and the Senate's planned review of the Clarity Act on September 15.
Disclaimer
The insights and opinions offered by the author serve purely as informational content and should not be interpreted as financial, investment, or other forms of advice.