XRP Price Slumps 8% as 'QE Lite' Effect Wears Off

XRP price has fallen by 8% over the past week, dropping to $1.3672 after reaching an intraday high of $1.6963 just ten days ago.

This dip is not a collapse, but rather a correction following a violent and leveraged spike that pushed XRP's price up 51% in response to the US Treasury expanding its buybacks of long-dated government debt.

The move was amplified by a short squeeze, with $2 billion in shorts liquidated during the week, and fueled by whale accumulation and macro liquidity headlines.

However, ETF inflows are strong, reaching a record $110.49 million in the week ending August 28, which is still not enough to absorb the monthly structural release of new XRP supply, estimated to be between $270 million and $550 million.