XRP Soars 30% as Bitcoin Breaks Above $72K in Record Short Squeeze

XRP has had its strongest week in months, gaining 30% since last weekend's close under $1. The token has been trading near $1.29 and broke above a level it hadn't touched since right before its 2024 election pump.

The move traces back to Bitcoin's break above $72,000, fueled by a record short squeeze and a U.S. Treasury plan to double long-bond buybacks starting September 9. XRP outran what its usual correlation to Bitcoin would predict, with the Relative Strength Index (RSI) spiking to 79.2.

However, futures open interest has already dropped 11% from its rally-day peak, and XRP still trades about 17.5% below its 200-day trend. Daily XRP ETF inflows fell during the spike, even as the token outperformed Bitcoin.

The coin's Average Directional Index (ADX) score is holding well above 29, indicating an increasing trend strength due to the explosive movement. This means that while the current move is impressive, it remains to be seen whether XRP can continue posting gains at a slower pace to activate signals of a sustained trend reversal.