XRP Price Plunges Below $1.50 Amid Profit-Taking and Leveraged Trading

The price of XRP has dropped below $1.50 after climbing above $1.69, and some investors are wondering whether this is a short-term correction or the end of the rally.

The token's sharp rise was largely driven by macro factors across the crypto market, including a major US Treasury announcement on August 19 that it would at least double the size of buybacks for some longer-dated government bonds from September 9. This pushed bond yields lower and increased demand for riskier assets, causing the wider crypto market to rally.

The XRP price rose amid falling US Treasury yields, stronger demand for riskier assets, and wider crypto market momentum. Short liquidations, ETF flows, and XRP Ledger developments also provided support for the token's sharp rise.