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Points of Focus
- XRP surged 46% in seven days but lost momentum after facing heavy resistance.
- Overbought RSI readings and elevated leverage increase the risk of a deeper correction.
- Holding $1.34 could preserve XRP’s bullish structure.
XRP’s (XRP) explosive rebound is losing momentum after the cryptocurrency surged as much as 46% in seven days, briefly reaching $1.55 and pushing its market capitalization above $91 billion.
The rally benefited from improving sentiment across the crypto market, with the Crypto Fear & Greed Index entering “extreme greed” territory for the first time since 2024. Bitcoin’s (BTC) recovery also encouraged traders to rotate into higher-risk altcoins.
However, XRP subsequently retreated toward $1.40 after sellers defended the $1.55-$1.70 resistance zone. The pullback leaves the token approaching a critical test at $1.34 that could determine whether the rally resumes or turns into a deeper correction.
XRP rally runs into overbought conditions
Technical indicators suggest XRP’s rapid ascent may have stretched too far in the short term.
Its seven-day relative strength index (RSI) recently climbed above 73, placing the asset firmly in overbought territory. Another reading put the RSI as high as 76.8. While an overbought signal does not guarantee an immediate decline, it indicates that buying pressure may be difficult to sustain without consolidation.
Coinbase $XRP whales are currently blocking the rise.
At the same time, they are busy preparing something.
A sell wall exsiting up to $32 was formed this month. And the most of this sell wall was created by Coinbase whales.
The group currently controlling $XRP the mainly is… https://t.co/UEBwm53LTy pic.twitter.com/mgdXg3dzEf
— CW (@CW8900) August 25, 2026
XRP also remains under a death-cross formation, with its 50-day exponential moving average (EMA) below the 200-day EMA. That structure suggests the broader trend has not yet turned decisively bullish despite the sharp rebound.
The token has now faced multiple rejections near $1.55, while stronger selling emerged as it approached $1.70. Bulls would need to reclaim this area with rising volume to confirm that the move represents more than a relief rally.
Leverage and whale deposits add downside risk
Derivatives positioning could amplify XRP’s next move. The rejection from the recent high reportedly triggered more than $500 million in long liquidations, while elevated leverage on major exchanges leaves traders vulnerable to another cascade.
Large XRP transfers to centralized exchanges have added to distribution fears.
Market participants have also raised concerns about potential future supply increases after an exchange-traded fund (ETF) filing referred to the possibility of Ripple releasing additional XRP from escrow to support liquidity.
Those factors do not necessarily invalidate XRP’s longer-term institutional narrative. Spot ETF demand, Ripple’s expanding payments footprint, and rising XRP Ledger activity continue to provide fundamental support. However, they may not be enough to prevent near-term profit-taking.
Why $1.34 is XRP’s make-or-break level
The immediate technical battleground sits between $1.34 and $1.40. Holding that zone could allow XRP to consolidate before challenging $1.55 again.
A decisive break below $1.34, however, would weaken the bullish structure and expose the next Fibonacci support around $1.25.
More severe selling could bring the rally’s lower support levels back into view.
For now, XRP’s 46% surge remains intact, but with momentum overheated and resistance holding, the hardest part of the recovery may only be beginning.
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