XRP price rally: What drove its 47% weekly gains?

Introduction

XRP, the cryptocurrency associated with the payments network, experienced a significant price surge over a week, rallied by a combination of macroeconomic policy and market dynamics. On August 24, the token traded near $1.47, a 47.5% jump in seven days, according to crypto.news data. Finbold, another outlet, described the move as "one of the most dramatic rebounds in recent memory," with the price climbing nearly 50% from $0.99 to $1.47, levels last seen in May.

Both outlets agree that the increase in market capitalization was substantial, with Finbold reporting it jumped from $62.53 billion on August 17 to just under $92.85 billion on August 24, a seven-day inflow of over $30 billion. Crypto News put the market cap at $92.3 billion with daily trading volume of approximately $4.72 billion. The token briefly moved above $1.50 before surrendering some of those gains.

Yet the rally has recovery from a steep bear market. Crypto News noted that XRP remained about 59.6% below its July 2025 record of $3.65, while Finbold said the coin was still down 50% on a yearly basis and 61% below its 2018 all-time high of $3.84. Some predictions see it stabilizing below $2 in the coming weeks.

The Role of Treasury Buybacks

The prevailing explanation, carried by both sources, points to a U.S. Treasury announcement of larger liquidity buybacks for long-dated government debt. The Treasury will raise the maximum amount purchased in individual operations from $2 billion to at least $4 billion, covering nominal securities with maturities of 10–20 years and 20–30 years, starting September 9. Crypto News adds that these operations will run through November 4.

Following the announcement, long-term Treasury yields initially fell, the U.S. dollar weakened, and risk assets advanced. Both outlets interpret this as a driver for cryptocurrency gains, as lower yields make non-interest-bearing assets like crypto more appealing. However, Crypto News is more cautious: it notes that while some traders saw the move as a possible step toward "yield curve control," the Treasury described the operations strictly as liquidity support. It emphasized that any claim about future monetary easing remains speculative, since scheduled, capped purchases do not fit the usual definition.

Short Liquidations and Market Dynamics

In addition to the Treasury news, both reports highlight a dramatic reduction in bearish derivatives positions. Finbold reported that $3.35 billion in crypto positions were liquidated over 24 hours on August 20, affecting the entire market and further propping XRP. CoinGlass data, cited in Crypto News's coverage, showed approximately $1.2 billion in cryptocurrency shorts liquidated within a single day, but that figure covered the broader market, not just XRP. Crypto News explicitly corrected a causal claim that nearly $2 billion of XRP shorts were liquidated during the week, stating that available data does not support that theory.

According to Cass, the estimated leverage ratio for XRP derivatives on Binance climbed to its highest level since early January, sitting at 0.21 at press time. Crypto News, however, suggested a highest level since early 2026. This discrepancy remains, but both agree that rising leverage can amplify a rally when short sellers are forced to close, but also intensify a correction when leveraged longs are liquidated.

The rally was also accompanied by notable volume and strong technical indicators. Crypto News reported daily chart volume of approximately 77.59 million tokens, with the Chaikin Money Flow at 0.13 and the Klinger Oscillator at 18.31 million, above its signal line.

Large holders accumulated approximately 380 million XRP tokens during the week, with a sharp increase in XRP Ledger transactions exceeding $1 million, according to Crypto News. The data does not identify the owners or their intentions.

Analyst Views and Market Outlook

Both outlets include commentary from crypto analyst EGRAG Crypto, who offered a cautious prediction. In Finbold's account, EGRAG Crypto said on August 24 that XRP's next major move could depend on securing a weekly close above $1.65. If rejected, the token could fall back to an $0.85–$1.05 range as a potential macro bottoming zone. Crypto News presented a slightly different version, quoting EGRAG as saying the price remains inside a broader range until closes above his identified resistance, while describing a forecast of $6–$7 as speculative.

Crypto News also outlined immediate technical levels, with resistance between the recent $1.54 high and the $1.60 psychological barrier, and first support around $1.44. A deeper pullback toward $1.30 would revisit earlier trading territory.

Despite the impressive rally, both outlets downplayed the notion of a complete recovery. Crypto News pointed to a 35.2% monthly gain improving medium-term structure, but noted a 51.5% decline over the past year and the still massive distance from the record high. Finbold echoed this by highlighting the regulatory overhang, with uncertainty surrounding the of CLARITY Act continuing to weigh on XRP before the rally.

Conclusion

The rally has lifted XRP significantly but its foundations remain based on a policy move and short liquidations, both of which could take on adverse effects. Crypto News labels certain narratives—like yield curve control or huge XRP-specific short liquidations—as speculative, while Finbold presents them with less caution, possibly fueling faster interpretations.

For now, the market will watch the September 9 start of larger Treasury buybacks, long-term yield movements, and shifts in Binance leverage as the key things that will test whether XRP can hold its gains. Whether the token can extend its upward momentum or retreat as some analysts predict remains to be seen.