Peter Smith
⬤ The Russell 2000 has broken out to new highs, putting the spotlight back on its past relationship with XRP when investors chase higher-risk assets. A similar setup played out in November 2024, when the Russell 2000's decisive move higher lined up almost perfectly with XRP's sharp parabolic run—showing how both assets can move in sync when market sentiment shifts.
⬤ The chart overlay tells the story clearly. During November 2024, the Russell 2000 burst out of consolidation with a strong upward candle while XRP shot higher at the same time. Since the Russell 2000 tracks roughly 2,000 U.S. small- and mid-cap companies, it's widely watched as a measure of risk appetite beyond the big tech giants. When it breaks out, it signals money is moving toward riskier bets.
⬤ Now the Russell 2000 is breaking out again after months of choppy trading. This latest move suggests capital is flowing further down the risk spectrum instead of staying parked in mega-cap stocks. The pattern matters because past Russell 2000 breakouts have often matched up with stronger performance in high-beta assets like XRP, which tends to thrive when investors are feeling confident.
Peter Smith
