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Point of Focus
- XRP surged roughly 30% after rebounding from $1.
- Ripple’s backed token recorded its strongest week since the 2024 US election rally.
- Whales accumulated more than 300 million XRP as trading volume climbed by 430%.
XRP (XRP) has staged a dramatic recovery from the psychologically important $1 level, gaining roughly 30% in its strongest week since the rally that followed the 2024 US presidential election.
Ripple’s backed token climbed as high as $1.36 after briefly falling below $1 last week, a level it had not touched in almost two years. Trading volume jumped 430% to $5.3 billion during the advance, while large holders accumulated more than 300 million XRP.
However, the rally now faces a decisive technical test. XRP must overcome its 200-day exponential moving average (EMA) to turn a short-squeeze-driven rebound into a more convincing trend reversal.
Bitcoin short squeeze ignites XRP rally
Bitcoin (BTC) provided the initial catalyst by breaking above $72,000 following the US Treasury’s announcement that it would double its long-bond buybacks to at least $4 billion per operation from Sept. 9.
The move helped liquidate more than $3 billion in crypto short positions over 24 hours, forcing bearish traders to buy assets to close their positions. XRP benefited disproportionately, outperforming Bitcoin and the other largest cryptocurrencies.
BTC’s best day since February 2026 fueled by $1.4 billion short squeeze
“short sellers are forced to buy back their positions to limit losses. These forced buybacks in turn fuel the rally, creating a snowball effect.” – By @Darkfost_Coc pic.twitter.com/ndh6l85nUC
— CryptoQuant.com (@cryptoquant_com) August 20, 2026
Improving US regulatory expectations added fuel. The Securities and Exchange Commission’s proposed crypto framework and President Donald Trump’s renewed support for market-structure legislation strengthened hopes that Ripple and XRP could benefit from greater legal clarity.
Whales accumulate 300 million XRP
Large XRP holders began accumulating before the rally gathered momentum. Whales bought 72 million tokens in 24 hours as XRP defended $1, then increased their holdings by more than 300 million XRP during the week.
Their combined balance climbed from 16.05 billion XRP on Aug. 16 to 16.36 billion.
XRP WHALES GO CRAZY!
More than 300 million $XRP have been scooped up by whales in just 96 hours. https://t.co/70eHTdeG8a pic.twitter.com/4Pv9ME8tEr
— Ali Charts (@alicharts) August 20, 2026
This accumulation may have reduced available selling pressure and encouraged smaller investors to follow the move.
XRP subsequently broke out of its descending channel and cleared resistance at $1.15, with surging volume confirming strong demand.
XRP must clear its 200-day EMA
The next major test sits around XRP’s 200-day EMA. A sustained breakout above this long-term trend indicator could open a path toward $1.80, representing approximately 40% upside from the $1.29 area.
Yet the rally shows signs of overheating. XRP’s relative strength index (RSI) reached 79.2, placing it deep in overbought territory. Futures open interest has also fallen by 11% from its rally-day peak, while daily XRP ETF inflows dropped to $2.35 million from $5.81 million.
🚨 OPINION: RippleXity called it. $XRP bull run will come out of nowhere.
Follow us. It's Happening. https://t.co/L2fjQvK9qt
— RippleXity (@RippleXity) August 21, 2026
Those figures suggest forced short covering contributed heavily to the advance. XRP may therefore need to consolidate before challenging $1.80.
Holding above $1.15 would preserve the bullish structure, while losing that level could expose the rally as a temporary squeeze rather than a durable reversal.
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