US Treasury Buyback Plan Lifts XRP 51% in a Week

The U.S. Treasury's expanded long-dated debt buybacks helped lift XRP 51% in a week, with $2B in shorts liquidated and XRP ETF inflows hitting a record.

(09:35 PM UTC)
4 min read
AI SummaryAI
  • Bitcoin rose roughly 22% and Ether gained 30% in the same week that XRP advanced 51%.
  • CoinGlass data shows about $2 billion in XRP short positions were liquidated this week.
  • The U.S. Treasury plans to buy back at least $4 billion per operation in 10- to 30-year notes from Sept. 9 to Nov. 4, double the previous cap.
  • Spot XRP ETFs took in $39.78 million last week, the most since the week ending May 15, per SoSoValue data.
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Treasury Plan Fuels 51% XRP Rally

XRP has jumped 51% over the past seven days, on pace for its largest weekly gain in 21 months, after a U.S. Treasury buyback expansion and a wave of short covering ignited the altcoin’s sharpest move since late 2024. The token climbed to roughly $1.50 by Saturday, according to market data, even though it had been below the $1 mark only a week earlier following a prolonged bear market. Derivatives data from CoinGlass shows about $2 billion in XRP short positions were liquidated this week. A short position is a bet on lower prices, and when a rally forces those trades to close, the resulting buy orders can accelerate the move. The weekly performance outran most large-cap digital assets: Bitcoin rose roughly 22% over the same stretch, Ether gained 30%, and Solana added about 28%. The Treasury’s plan to buy back at least $4 billion per operation in 10- to 30-year notes between September 9 and November 4 — double the previous $2 billion cap — was widely read as an effort to contain long-dated yields, which had climbed to levels not seen since 2007. The operation is primarily a liquidity-management tool rather than quantitative easing or yield-curve control, but the timing amplified its market impact. Traders responded by rotating into risk assets, with XRP catching up after months of relative underperformance during the early stage of the recovery. Market observers say additional confirmation is needed before the rally can be treated as a medium-term trend shift. Yet the rebound remains incomplete: even after the surge, the token is far below the all-time high of $3.65 set in July 2025, having recovered only about 20% of the decline from that peak. Analysts caution that the durability of the move depends on whether fresh spot demand emerges after the short-squeeze impulse fades and on how bond markets absorb the buyback schedule.

XRP ETFs Post Best Week Since May

Spot exchange-traded funds tied to XRP recorded their strongest weekly inflow since May, a sign institutional demand is finally matching the token’s price revival. The products had seen little net buying for most of August, and Monday opened with zero flows, continuing a streak of empty sessions. The product category had spent most of the month in a quiet phase, even as XRP traded in a wide range. SoSoValue's figures track net flows into U.S.-listed spot exchange-traded products, and the data shows the funds took in $39.78 million last week, the most since the week ending May 15. Friday was the best session, with $18.38 million in net inflows, the largest single-day result since May 14. That contrasted with the pattern in Bitcoin and Ether funds, where Friday was less notable. The week marked a sharp reversal from earlier in August, when seven of the first 11 trading days generated zero inflows. The turnaround began on August 18 with $5.81 million, the biggest daily intake for the month at that point. Wednesday’s modest $2.35 million inflow came as the Treasury announcement and a White House crypto summit hosted by President Trump shifted market sentiment; Thursday then added $13.24 million. The weekly total lifted cumulative net inflows into XRP ETFs to a record $1.55 billion, while the sustained demand suggests the investor shift extends beyond the leveraged futures market. Bitwise’s XRP fund remains the largest vehicle, with cumulative net inflows of $542.69 million; Canary Capital’s XRPC follows at $468.12 million, and Franklin’s XRPZ ranks third at $434.16 million. The product segment, long seen as a laggard in the digital-asset fund complex, now shows a demand profile consistent with the broader altcoin resurgence. Whether the inflow momentum continues may hinge on the same macro catalysts driving the spot market, particularly the trajectory of long-term Treasury yields.

$1.58 Resistance in Focus

COINOTAG's proprietary 42-indicator composite S/R scoring engine rates the $1.5796 resistance at 60/100, driven by the Fibo 0.114 level and the ATR upper band, with $1.6485 (66/100, Fibo 0.000, Donchian Upper and R1) as the next objective. At press time, XRP traded at $1.5367. The strongest support is $1.3922 at 84/100, supported by a resistance-to-support flip, the Ichimoku Tenkan and Kijun, and the Fibo 0.500 retracement. Derivatives show perp funding at 0.0056%, open interest of $1.13 billion, and a long/short account ratio of 2.63 (72.5% long). With the Fear & Greed Index at 66, a sustained close above $1.5796 extends the uptrend, while a break below $1.4753 signals fading momentum; a decisive move under $1.3922 invalidates the bullish structure.

James Mitchell

James Mitchell

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AI-AssistedSenior Technical Analyst·James Mitchell is a senior technical analyst with over six years of dedicated cryptocurrency market analysis experience.

AI-generated, AI-reviewed, under COINOTAG editorial oversight.