XRP experienced a strong rally over the weekend, jumping to an intraday high of $1.6963 before retreating to $1.4578 as the recent upward momentum slowed. The move left Ripple’s token 47% above its 2026 low of $0.9905, reached on August 11 following a bridge exploit that briefly drove XRP below $1 for the first time since late 2024.
ETF inflows support XRP rally
XRP’s recent price gains were largely driven by a broader cryptocurrency market upswing, with Bitcoin approaching $80,000 and Ethereum extending its rally. Market optimism lifted most altcoins, including XRP.
The positive sentiment also resulted in a sharp increase in inflows to XRP exchange-traded funds (ETFs). Data reveals that spot XRP ETFs attracted $39.7 million in new capital last week, a significant rise from the $2.25 million added the week before.
Cumulatively, XRP ETFs have now seen over $1.5 billion in inflows and currently hold more than $1.3 billion in net assets under management. The largest products in this segment are operated by asset managers such as Bitwise, Franklin Templeton, and Canary.
ETH
SOL
BSC
ROBINHOOD
USDT
AAPLETF inflows are seen by some analysts as a reflection of rising demand for XRP from both retail and institutional investors. This surge in demand came after market intervention by Scott Bessent, a prominent hedge fund manager, in response to a recent spike in 30-year US Treasury yields.
Mini dictionary: Scott Bessent is the founder of Key Square Capital Management and has previously served as chief investment officer at Soros Fund Management, making him a widely followed figure in financial markets.
The confluence of macroeconomic factors and ETF inflows amplified volatility in XRP trading during the week.
| ETF | Last week’s inflow | Cumulative inflow | Net assets |
|---|---|---|---|
| Spot XRP ETFs | $39.7 million | $1.5 billion | $1.3 billion |
Ripple USD (RLUSD) and XRP Ledger expansion
Another factor contributing to XRP’s performance is the rapid growth in Ripple USD (RLUSD), Ripple’s own stablecoin launched in late 2024. RLUSD’s market capitalization has risen above $2.07 billion for the first time, cementing its status as a fast-rising competitor in the stablecoin market.
Trading volumes for RLUSD reached $753 million within 24 hours, underscoring its increasing utility. The Ethereum blockchain hosts the majority of RLUSD’s supply, while $988 million of the stablecoin now circulates on the XRP Ledger, approaching the $1 billion mark.
Mini dictionary: RLUSD is Ripple’s official US dollar-pegged stablecoin. Stablecoins are cryptocurrencies designed to maintain a stable value, typically by being backed with traditional assets like the US dollar, and play a crucial role in providing liquidity across blockchains.
Analysts view RLUSD’s rapid expansion on the XRP Ledger as a sign that on-chain utility could further bolster XRP’s value in the months ahead.
Risks and technical signals
Despite the recent rally, concerns remain over possible market pullbacks. Some analysts warn that the broad-based surge could represent a dead-cat bounce, where assets rebound temporarily before resuming a downward trajectory.
Macroeconomic worries persist, with elevated inflation raising the possibility that the Federal Reserve may increase interest rates, potentially weighing on risk assets like cryptocurrencies.
Technical indicators show that XRP became highly overbought. The daily chart reveals a pronounced rebound after the formation of a falling wedge pattern, a setup often considered a bullish reversal signal. XRP broke above key resistance at $1.1580 and moved past both the 50-day and 100-day exponential moving averages, which are typically interpreted as signs of bullish momentum.
The Relative Strength Index (RSI) for XRP surged to 85.50, signaling overbought conditions. Historically, assets with such high RSI readings often undergo corrections as traders take profits. A potential retest of the $1.1580 support could occur if profit-taking accelerates.
XRP’s latest price surge stands out within the broader altcoin market. However, the sustainability of this momentum will likely depend on the stability of macroeconomic conditions and ongoing inflows into ETFs and RLUSD.
