XRP staged a sharp recovery over the past week, climbing 47.5% in seven days and trading around $1.47 on Aug. 24. The move puts XRP on track for its strongest weekly performance since November 2024, although the token remains well below its previous all-time high.
Several factors appear to have contributed to the rally, including a broader shift toward risk assets, heavy short liquidations across crypto markets and renewed buying activity. At the same time, rising leverage in XRP derivatives could increase the risk of a sharp reversal.
Key factors behind the move
- The U.S. Treasury plans to increase purchases of longer-dated government bonds to at least $4 billion per operation beginning in September.
- More than $1.2 billion in crypto short positions were liquidated during a 24-hour period, helping accelerate the marketwide rebound.
- XRP leverage on Binance has reached its highest estimated level since early 2026.
- Despite its recovery, XRP remains roughly 60% below its July 2025 record high of $3.65.
According to the data cited in the original report, XRP gained about 1.2% over the previous 24 hours and traded between approximately $1.44 and $1.54. Daily volume was around $4.72 billion, while its market capitalization stood near $92.3 billion.
XRP briefly moved above $1.50 before giving back some of its gains. At current levels, the token has recovered only a portion of the decline from its 2025 peak.
Treasury move adds liquidity optimism
One catalyst behind the broader risk-asset rally was the U.S. Treasury’s decision to expand its planned purchases of longer-maturity government debt.
The Treasury intends to increase the maximum amount purchased during individual operations from $2 billion to at least $4 billion. The purchases will cover securities with maturities of 10 to 20 years and 20 to 30 years, beginning Sept. 9.
The larger operations are scheduled to continue through Nov. 4.
Following the announcement, longer-term Treasury yields initially moved lower while the dollar weakened and risk-sensitive assets, including cryptocurrencies, strengthened.
Lower bond yields can make non-yielding assets such as Bitcoin and other cryptocurrencies relatively more attractive. Some market participants interpreted the Treasury action as potentially pointing toward a form of yield-curve management.
However, that interpretation goes beyond what the Treasury announcement actually establishes. The planned purchases are scheduled and capped and were described as a measure intended to provide liquidity to segments of the government bond market. They should not automatically be viewed as confirmation of future monetary easing or formal yield-curve control.
Short liquidations amplify XRP’s breakout
The XRP rally also occurred alongside a major wave of liquidations across cryptocurrency derivatives markets.
Data cited during the initial move showed roughly $1.2 billion in crypto short positions being liquidated within a 24-hour period. The figure covers the broader cryptocurrency market and should not be interpreted as XRP-specific liquidations.
When a leveraged short position moves sharply against the trader, the exchange may automatically close the position. That forced closure typically involves buying the underlying asset, which can push prices higher and trigger additional liquidations.
This feedback loop can create a short squeeze, allowing an existing price move to accelerate rapidly.
XRP also appeared to benefit from activity among larger holders. On-chain data cited in the report indicated that large wallets accumulated approximately 380 million XRP during the week, while transactions exceeding $1 million increased.
However, on-chain transfers alone cannot establish whether these movements represented purchases. Large transactions may also involve transfers between personal wallets, custodians, exchanges or other entities.
Rising leverage creates two-sided risk
XRP’s derivatives market is showing another important development: estimated leverage on Binance has climbed to its highest level since early 2026.
A higher estimated leverage ratio indicates that open interest is increasing relative to the amount of XRP held in exchange reserves. It does not reveal whether traders are overwhelmingly bullish or bearish, but it does suggest that a greater amount of market exposure is being supported by borrowed capital.
That can work in both directions.
If XRP continues higher, elevated leverage can intensify a short squeeze as bearish traders are forced to close positions. But if the price turns lower, heavily leveraged long positions can face liquidation, potentially accelerating the decline.
As a result, XRP could remain particularly volatile while leverage stays elevated.
Technical momentum strengthens
XRP’s technical structure has also improved following the breakout.
The move was accompanied by trading volume of approximately 77.59 million XRP, while the Chaikin Money Flow indicator remained positive around 0.13. The Klinger Oscillator was also reported at approximately 18.31 million, above its 10.1 million signal line.
Together, these indicators point toward continued buying interest, although they do not guarantee that the rally will continue.
Crypto analyst EGRAG Crypto has argued that XRP remains within a broader trading range until it decisively clears a key resistance area. The analyst has also outlined a potential long-term target between $6 and $7 based on historical market-cycle comparisons.
That projection remains speculative. Previous percentage gains cannot by themselves establish that XRP will repeat a similar move in the future.
XRP faces an important resistance test
The next major test for XRP is around the $1.54 to $1.60 area. A sustained move above this zone could strengthen the case that the breakout has genuine follow-through rather than being driven primarily by short liquidations.
On the downside, approximately $1.44 represents an important near-term support level based on the latest trading range. A deeper decline toward $1.30 could bring XRP back toward levels associated with the earlier phase of the breakout.
XRP’s reported 35.2% monthly gain reflects a significant improvement in short- and medium-term momentum. However, the token’s approximately 51.5% decline over the past year and its distance from the $3.65 record high highlight how much ground remains to be recovered.
What traders will watch next
The sustainability of XRP’s rally will ultimately depend on whether spot buying continues after the initial wave of derivatives liquidations fades.
Market participants are likely to focus on several factors in the coming weeks: the launch of the larger Treasury buyback operations on Sept. 9, movements in long-term U.S. Treasury yields, changes in XRP derivatives leverage and whether spot-market demand remains strong.
For now, XRP’s 47% weekly surge marks a major shift in momentum. But with leverage rising and the token still far below its previous peak, the next phase could be just as volatile as the move that brought XRP this far.
