XRP Corrects 8% After Macro-Fueled Rally

XRP's price has fallen by 8% in the past week, down to $1.3672 after a daily candle that opened at $1.3793 and closed 0.91% lower. This decline may seem alarming, but it's essential to put it into context.

XRP was the single best-performing large-cap cryptocurrency just ten days ago, surging from around $1 to an intraday high of $1.6963 in five sessions. It finished August up 28.5%, its best August since 2021.

The reason for XRP's price increase wasn't due to any specific demand or supply imbalance within the XRP market itself. Instead, it was largely driven by a macro liquidity headline, the US Treasury's announcement of expanded buybacks of long-dated government debt. This news led to lower long-end yields, which in turn fueled a risk-on rally that saw XRP and other assets rise.

However, as the yield curve has since stabilized, the price of XRP has begun to correct itself. The current pullback is not a crash, but rather a retest of the 200-day EMA at $1.3508, which XRP blew through during its August surge.

The daily chart shows that resistance overhead sits at $1.4500, where sellers already stepped in on the way down. Above this level is the zone where the late-August candle got rejected, which also lines up with the highs from early May.