Massive XRP price surge adds $30 billion to its worth in a week
In one of the most dramatic rebounds in recent memory, XRP price has surged nearly 50% and added approximately $30 billion to its market capitalization in the span of a week.
More precisely, XRP’s market cap stood at just shy of $92.85 billion at press time, August 24, up from $62.53 billion on August 17, representing an inflow of $30.32 billion in just seven days.
At the same time, XRP price itself has gone up from $0.99 to $1.47, levels last seen back in May this year.
XRP market cap. Source: CoinMarketCap
Despite the rally, the cryptocurrency is still down 50% on the yearly chart and 61% below the record high of $3.84 seen in 2018, and some XRP price predictions see it stabilizing below $2 in the coming weeks.
Biggest XRP price rally since SEC settlement
The rally gained momentum after the U.S. Treasury announced larger buyback operations for longer-dated government debt. That is, the Treasury will increase the maximum amount purchased in individual operations from $2 billion to at least $4 billion, a change that applies to nominal securities with maturities of 10 to 20 years and 20 to 30 years, beginning September 9.
Meanwhile, a sharp reduction in bearish derivatives positions led to $3.35 billion in crypto positions liquidated over 24 hours on August 20, affecting the broader cryptocurrency market and propping XRP further.
As a result, the estimated leverage ratio for XRP derivatives has climbed to its highest level since early January, sitting at 0.21 on Binance at press time, according to CryptoQuant data. Elevated leverage can amplify a rally when rising prices force short sellers to close positions. However, it can also intensify a correction when leveraged longs are liquidated.
XRP leveraged ratio. Source: CryptoQuant
Looking at the setup, crypto analyst EGRAG Crypto said on August 24 that XRP’s next major move could depend on whether it can secure a weekly close above $1.65. A rejection at that level could send the token back, with the $0.85-$1.05 range as a potential macro bottoming zone.
Featured image via Shutterstock
