XRP posts its best week since the 2024 election, driven by Bitcoin short squeeze liquidations, though ETF flows and futures data suggest momentum may be unsustainable.
Macro & Markets ·
XRP surged roughly 30% over the past week, posting its strongest performance since the post-election rally in November 2024. The token gained 10.40% in a single session Wednesday—its steepest daily move since early February—and continued climbing Thursday as Bitcoin broke past $72,000 following a U.S. Treasury announcement on long-bond buybacks. The move traces to Bitcoin's record short squeeze, which liquidated $3 billion in shorts over 24 hours and preceded a White House meeting between Trump and executives from Coinbase, Ripple, and Robinhood.
XRP's technical indicators flashed warning signs despite the rally's magnitude. The token's Relative Strength Index spiked to 79.2, signaling deeply overbought conditions, while XRP's own ETF inflows contracted to $2.35 million even as the token outperformed Bitcoin—a divergence that suggested retail participation may have weakened. Bitcoin ETFs, by contrast, pulled in $517 million on the same day.
Momentum metrics indicate the rally may lack staying power. Futures open interest has already fallen 11.31% from its peak during the spike, and XRP trades roughly 17.5% below its 200-day trend line. Sustained gains at a measured pace would be required to confirm a genuine trend reversal rather than a temporary short-squeeze-driven bounce.