XRP price surged to an intraday high of $1.6963 on Saturday, then reversed sharply, currently trading at $1.4578 as the rally cooled. Ripple’s token remains 47% above its 2026 low of $0.9905, hit on August 11 after a bridge exploit briefly pushed the price below $1 for the first time since late 2024.
XRP ETF inflows are rising
The main reason behind the recent XRP price surge was simply the broader crypto market rally that affected Bitcoin and most altcoins. Bitcoin broke out and approached the crucial resistance level of $80,000. Ethereum and other altcoins also continued their strong rallies.
The risk-on sentiment helped to drive XRP ETFs higher. Data shows that the spot XRP ETFs added over $39.7 million in inflows last week, up shaply from the $2.25 million they added a week earlier.
These funds have now had cumulative inflows of over $1.5 billion, and now have over $1.3 billion in net assets. The biggest ones are those run by companies like Bitwise, Franklin Templeton, and Canary.
In most cases, rising XRP ETFs is usually a sign that American retail and institutional demand is rising. In this case, the demand rose after Scott Bessent decided to intervene in the bond market as the 30-year rose to its highest level in nearly two decades.
RLUSD growth is continuing
Another potential catalyst for the XRP price is the strong growth of Ripple USD (RLUSD) this month. The stablecoin has seen its market capitalization soar to over $2.07 billion for the first time since its launch in late 2024.
RLUSD has become a highly popular stablecoin, with the 24-hour volume rising to over $753 million. While most of the RLUSD stablecoin is in the Ethereum Chain, $988 million of it is in the XRP Ledger. That is a sign that the figure will cross the $1 billion mark soon.
This growth will help to boost XRPL’s utility in the coming months, which may help to boost XRP prices.
Still, XRP faces some potential risks. One of them is that the recent crypto comeback is part of a dead-cat bounce, a situation where an asset in a freefall rebounds and then resumes the downtrend.
Another risk is that inflation may remain stubbornly high, which may push the Federal Reserve to hike interest rates.
XRP price has become highly overbought
XRP chart | Source: TradingView
The daily chart shows that the XRP price surged hard last week. This rebound happened after it formed a giant falling wedge pattern, which is a common bullish reversal sign. The pattern is made up of two descending and converging trendlines, with rebounds happening when the confluence is nearing.
The token has now moved above the important resistance level of $1.1580, its highest level on July 21. It also moved above the 50-day and 100-day Exponential Moving Averages (EMA), a sign that bulls are in control for now.
The risk, however, is that the token has become highly overbought, with the Relative Strength Index (RSI) soaring to 85.50. In most cases, highly overbought assets tend to retreat as investors book profits. In this case, the token may retreat and retest the support of $1.1580.
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