Ripple's XRP continued its upward trajectory on Thursday, building on Wednesday's 11% surge as improving liquidity conditions fueled a broad cryptocurrency market rally. The token is currently trading above $1.10, outperforming Bitcoin over the past 24 hours.
Treasury Buybacks Spark Risk-On Sentiment
The rally gained momentum after the U.S. Treasury announced an expansion of its debt buyback operations, a move aimed at supporting liquidity in longer-dated Treasury securities. According to Reuters, liquidity-support buybacks for longer-dated nominal coupon securities will increase from $2 billion to at least $4 billion per operation.
This announcement eased concerns about Treasury market liquidity, encouraging investors to shift toward riskier assets. The improved sentiment triggered a short squeeze across the cryptocurrency market, accelerating gains in XRP and other digital assets.
CoinGlass data shows that 172,642 traders were liquidated over the past 24 hours, with total crypto liquidations exceeding $3.21 billion. XRP recorded $120.71 million in liquidations, with long positions accounting for more than 85% of that figure, indicating that leveraged bullish positioning remains elevated despite the broader upward move.
Technical Levels to Watch
XRP is trading around $1.14 on Thursday, maintaining its position above the 50-day Exponential Moving Average (EMA) at $1.076. However, the token remains below the 100-day EMA at $1.153 and the 200-day EMA at $1.338, which represent significant barriers that could limit further upside.
XRP has also reclaimed a previously broken descending trendline around $0.995, converting that former resistance into potential support. This suggests the token is attempting to establish a stronger recovery structure, though buyers must overcome the longer-term moving averages to confirm a sustained bullish reversal.
Momentum Indicators Point Higher
Momentum indicators support XRP's near-term bullish outlook. The Relative Strength Index (RSI) stands near 63, approaching overbought territory, reflecting increased buying pressure. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator has moved above its zero line, signaling strengthening bullish momentum.
However, neither indicator confirms that XRP has overcome its major technical barriers. Immediate resistance sits at the 100-day EMA near $1.153. A sustained break above this level could allow XRP to target horizontal resistance at $1.300, followed by the 200-day EMA at $1.338. If the rally extends beyond these levels, the longer-term structural resistance at $1.900 could come into focus.
Support Levels to Monitor
The 50-day EMA at $1.076 provides XRP's first significant support level. A decline below this moving average could expose the psychological $1.000 mark and the former descending trendline near $0.995. Together, these levels form an important demand zone that buyers must defend to preserve the latest rebound.
A decisive move below $0.995 would weaken the short-term bullish outlook and increase the risk of a deeper correction. For now, the market's reaction to the Treasury's liquidity measures and broader risk appetite will likely dictate XRP's next move.
For more on related market movements, see our coverage on Treasury buybacks easing yields and Bitcoin SV's stalled breakout.
This article is for informational purposes only and does not constitute financial advice.
