XRP Pullback Tests Rally as Leverage Hits Highs
XRP is down 6.23% in 24 hours as leverage returns to January highs, testing the $1.40 support zone.
The update
XRP is leading a pullback among the top 10 cryptocurrencies by market cap. The asset fell 6.23% over the last 24 hours, the steepest drop in the group. Despite the recent decline, XRP remains up 35.55% over the past week.
The price action is retesting the $1.40 zone that flipped from resistance to support during last week’s breakout. Charts show short setups forming on the daily timeframe. Market participants are digesting a broader week where Bitcoin briefly cleared $80,000 before cooling toward the $78,000 zone.
Why it matters
The current decline is linked to a rapid rally that pushed XRP from around $1.00 on August 18 to an intraday high near $1.69 just four days later. This aggressive move has attracted leverage, with futures volume running more than five times spot trading. CryptoQuant data shows the estimated leverage ratio on Binance is at its highest since January. Long accounts now outnumber shorts, raising the risk of a sharper pullback.
ETF data indicates that XRP-linked funds have logged nine straight days of net inflows, suggesting the current pressure is driven by leverage rather than institutional exits.
What to watch
Traders are watching the $1.40 support zone closely. A sustained break below this level could trigger a stop-loss cascade. The broader market is also awaiting tonight’s core PCE inflation data and Nvidia’s earnings report, which are expected to set the tone ahead of the Jackson Hole economic symposium.
Sources
- decrypt.co — Price action, percentage changes, ETF inflows, and market context.
- coindesk.com — Leverage metrics and futures volume data.