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Point of Focus
- XRP marked its strongest weekly performance since November 2024.
- Larger US Treasury bond buybacks improved liquidity expectations.
- Whale accumulation and XRP ETF inflows supported spot demand.
XRP traded near $1.47 on Aug. 24 after surging by 48% in seven days, putting the cryptocurrency on course for its strongest weekly performance since November 2024.
The token briefly crossed $1.50 before retreating, while its market capitalization climbed to approximately $92.3 billion. XRP significantly outperformed Bitcoin, Ether and Solana during the rally, transforming from a market laggard into one of the week’s strongest-performing major cryptocurrencies.
However, the advance did not stem from a single XRP-specific catalyst. US Treasury bond buybacks improved liquidity expectations across financial markets, while widespread short liquidations amplified the initial breakout. Whale accumulation and ETF inflows provided additional support.
Treasury buybacks trigger risk-on rally
The rally gathered momentum after the US Treasury doubled the maximum size of certain long-term bond buybacks from $2 billion to at least $4 billion per operation.
The expanded purchases, covering securities with maturities between 10 and 30 years, will begin on Sept. 9 and continue through Nov. 4. Long-term Treasury yields initially fell following the announcement, while the dollar weakened and risk assets advanced.
Investors interpreted the move as a sign that officials want to improve liquidity in stressed areas of the bond market. Lower yields can make non-yielding assets such as cryptocurrencies relatively more attractive.
Still, the program does not constitute yield curve control. Unlike that policy, the Treasury operations remain scheduled and capped rather than involving unlimited purchases to defend a particular yield.
Short squeeze accelerates XRP breakout
A wave of forced liquidations added fuel to the rally. Approximately $1.2 billion in crypto short positions were liquidated during one 24-hour period, according to CoinGlass data cited during the breakout.
When exchanges close leveraged bearish positions, the resulting purchases can push prices higher and trigger further liquidations.
Someone's betting BIG against $XRP right now 👀
$2.18M short position, 5x leverage, entry at $1.5147This wallet has a 70% win rate and just added $1.36M more to the short 11 minutes ago.
liquidation hunters? 🍿 https://t.co/LIzThco1vL pic.twitter.com/lXQEeNU6qa
— Xaif Crypto (@Xaif_Crypto) August 23, 2026
XRP’s rapid move above key resistance levels suggests that this feedback loop played an important role.
Spot demand also supported the rally. Large holders reportedly accumulated around 380 million XRP during the week, while US spot XRP ETFs recorded roughly $39.8 million in net inflows.
Rising leverage threatens a sharp reversal
The sustainability of the rally now depends on whether genuine demand can replace liquidation-driven buying.
XRP’s estimated leverage ratio on Binance has reached its highest level since early 2026. Elevated leverage can extend gains, but it also leaves the market vulnerable to cascading long liquidations if momentum reverses.
#XRP : The RED 🔴 Chart – $1.65 Gate Decides the Next Move :
The red roadmap is still alive.#XRP is holding around $1.45, but the real confirmation level remains $1.65.
🔺Weekly full-body close above $1.65
= bullish breakout structure strengthens.🔻 Failure below $1.65
= I… pic.twitter.com/P0eTwDKCn8— EGRAG CRYPTO (@egragcrypto) August 24, 2026
Immediate resistance sits between $1.54 and $1.60. A sustained close above this zone could strengthen the bullish structure, while a drop below $1.44 may expose $1.30.
Despite the weekly surge, XRP remains nearly 60% below its July 2025 record high of $3.65. The rally marks a powerful recovery, but not yet a confirmed return to a long-term bull market.
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