XRP Price Surge Raises Questions About Drivers and Sustainability

XRP's price surge has left investors wondering whether it's time to sell. The token has reached $1.48, a 34% increase above its 50-day moving average of $1.11. However, the technical picture is stretched, with an overbought relative strength index reading and XRP still 54% below its 52-week high of $3.18.

The source of momentum appears to be shifting away from fresh ETF demand. Instead, market observers point to macro and positioning factors, such as short squeezes, Treasury-driven risk appetite, and large-holder accumulation. For example, on August 22, an expansion of US Treasury bond buybacks lifted crypto prices broadly.

Despite the slowdown in institutional flows, Ripple's dollar-pegged stablecoin RLUSD has just blown past a $2 billion circulation milestone, with most new issuance taking place on Ethereum rather than the XRP Ledger itself. This suggests that Ripple is prioritizing market reach over directing activity to its native chain.