XRP Leads Crypto Pullback as Leverage Unwind Tests Rally

Crypto markets are digesting a big week. Bitcoin cleared $80,000 for the first time in months on Tuesday before cooling toward the $78,000 zone on Wednesday, and traders are bracing for tonight’s core PCE inflation data and Nvidia’s earnings report, the two catalysts likely to set the tone heading into Jackson Hole.

Risk appetite has broadly improved this month, but not every token is riding the wave evenly. XRP, in particular, is giving back a chunk of its own rally faster than the rest of the market.

XRP is down 6.23% over the past 24 hours to around $1.38, the worst showing among the ten largest cryptocurrencies by market cap

That’s a sharp reversal for a token that was, until this week, the market’s standout: XRP is still up 35.55% over the past seven days, trailing only Hyperliquid’s 38.65% weekly gain among the top 10 and comfortably outpacing Bitcoin, Ethereum, and every other major coin.

The pullback traces back to how fast the rally built up. XRP rocketed from around $1.00 on August 18 to an intraday high near $1.69 just four days later, a move so aggressive it briefly touched the psychologically important $1.70 mark before Bitcoin’s own pullback from its $80,000 high started dragging altcoins lower across the board.

The one bright spot: XRP-linked ETFs, traditional funds that track the price of the crypto without the need to directly hold it, have logged nine straight days of net inflows, suggesting this is a leverage problem rather than institutions heading for the exits.

XRP price: Leverage catches up with the rally

On the daily chart, XRP opened at $1.4344, tagged a high of $1.4513 and is now trading near $1.3790, down 3.86% on the candle itself (not the last 24 hours, but the current day being traded or the candlestick under formation).

That puts XRP’s price right back at the $1.40 zone that flipped from resistance to support during last week’s breakout—the same level where XRP first reclaimed its 200-day exponential moving average, a milestone chart watchers flagged as an early sign of a possible trend reversal. Whether $1.40 holds now decides if this stays a healthy pullback or turns into something uglier.

The indicators are sending mixed signals. The Relative Strength Index, or RSI, which measures how overbought or oversold an asset is on a 0-100 scale, sits at 66.7—still bullish, but closing in on the 70 line where traders typically start booking profits.

The Average Directional Index, or ADX, which measures how strong a trend is regardless of direction, is running hot at 44.1, well above the 25 threshold that confirms an actual trend is in place, with the positive directional line (DI+) still reading above the negative one (DI-), a bullish tilt.

Source: finance.yahoo.com