preferred on
Points of Focus
- XRP’s $1.42-$1.44 support zone is crucial for keeping the recovery intact.
- XRP ETFs recorded six consecutive weeks of inflows.
- A breakout above $1.53 could reopen the path toward $1.70.
XRP’s (XRP) ability to defend the $1.42-$1.44 zone could determine whether its recent surge develops into another breakout or unravels through leveraged liquidations.
The cryptocurrency traded near $1.44 on Aug. 26 after losing more than 5% over 24 hours. Despite the pullback, XRP remained roughly 44% higher for the week after climbing from around $1.00 to nearly $1.70.
The underlying picture remains constructive. Exchange-traded fund (ETF) inflows are creating a regulated source of demand, while Ripple is expanding its stablecoin and tokenization businesses.
However, elevated derivatives activity leaves XRP increasingly vulnerable to a sudden decline.
ETF inflows could absorb profit-taking
US-listed XRP products have reportedly recorded six consecutive weeks of inflows, attracting roughly $40 million during the latest week. Combined daily inflows reached $13.8 million on Aug. 24.
The distinction between ETF turnover and inflows is important. Bitwise’s XRP ETF generated more than $80 million in trading volume during one recent session, but turnover measures shares changing hands rather than fresh capital entering the fund.
Actual net inflows provide the stronger bullish signal because spot products must acquire and custody the underlying token.
Continued institutional buying while XRP consolidates would suggest ETFs are absorbing sales from investors taking profits after the rally.
Record leverage raises liquidation risk
Derivatives markets present the clearest near-term threat. XRP’s estimated leverage ratio on Binance reached 0.21, its highest level in seven months, while futures open interest stood near $3.45 billion.
Futures volume climbed to approximately $6.4 billion over 24 hours, more than five times the reported $1.2 billion in spot volume.
🚨BOOM: $XRP Ledger Ranked #1 With $1.9 BILLION in 90-Day RWA Inflows — Beating Ethereum AND Stellar 🤯🔥📈
👉 In the reported 90-day snapshot, XRPL led all chains with $1.9B in RWA inflows, excluding stablecoins.
👉 That put it ahead of @ethereum at $1.6B and @StellarOrg at… https://t.co/xVRAmP7Pxc pic.twitter.com/yw8rYN9qoD
— Diana (@InvestWithD) August 26, 2026
Long positions also dominated several major exchanges, leaving the market heavily exposed to a downside move.
High leverage does not guarantee a correction. Nevertheless, a break below support could trigger forced closures of long positions, turning an orderly pullback into a sharper liquidation cascade.
$1.53 remains XRP’s breakout trigger
The $1.4287 level represents the immediate technical battleground. It corresponds with the 38.2% Fibonacci retracement and sits within a broader demand zone between $1.42 and $1.44.
Holding that area would keep the recovery structure intact and allow XRP to challenge $1.50. A decisive move above the $1.5324-$1.5328 resistance zone could reopen the route toward $1.70.
However, momentum appears stretched. The daily relative strength index (RSI) recently reached 74.29, above the traditional overbought threshold, even as the moving average convergence/divergence (MACD) remained bullish.
A sustained break below $1.42 would weaken the setup and expose support around $1.35 and $1.30.
XRP sits between two opposing forces: genuine institutional demand and a derivatives market carrying enough leverage to magnify its next move.
Share
Most read articles
