XRP Gains 10% on U.S. Treasury Liquidity Injection Optimism
XRP is up 9.8% to $1.10 on Thursday, outperforming a broad market rally primarily driven by a macro liquidity injection from the U.S. Treasury. The move was amplified by a massive short squeeze and sector rotation into regulated digital commodities.
The primary driver was a market-wide rally following the U.S. Treasury’s announcement that it would double the maximum size of its long-term bond buybacks to $4 billion per operation starting September 9.
This unprecedented intervention pushed Treasury yields down from 19-year highs, making risk assets like crypto more attractive and triggering a broad surge.
XRP’s rise was largely beta-driven, closely tracking Bitcoin’s 7.25% gain and the total crypto market’s 7.4% increase, rather than a coin-specific event.
The Federal Reserve’s FOMC meeting minutes will be released later today for further cues on interest rates and monetary policy.
The rally was violently accelerated by a derivatives short squeeze. Over $1.3 billion in short positions were liquidated in an hour, forcing traders to buy back assets.
Concurrently, capital rotated into the top-trending “SEC/CFTC Digital Commodities” category, where XRP is a named asset, boosting its relative performance.
Traders said high leverage created a feedback loop that magnified gains. The move confirms strong narrative-driven momentum for assets with regulatory clarity.
Sustained spot volume and ETF inflows would validate the breakout; a drop in open interest could signal the squeeze is over.
XRP faces immediate resistance at the 23.6% Fibonacci level near $1.10 and the recent swing high of $1.13. A concrete near-term event is the scheduled escrow release of 1 billion XRP on September 1, which historically adds modest selling pressure.
The bullish case requires holding above the $1.05 support (aligned with the 38.2% Fib level); a break below could test the 50-day simple moving average at $1.02.
The trend is bullish but overextended, with a trading signal at 73.64 signalling overheated conditions. The path forward depends on whether spot demand absorbs the upcoming unlock.
Price action around $1.10–$1.13 for a breakout or rejection, and on-chain whale activity to gauge conviction ahead of the September unlock. Ethereum Price Jumps 11% as US Treasury Yields Tumble
