After soaring to a three-month high, $XRP has pulled back alongside the broader market, leading to questions about whether its recent rally has come to an end.
$XRP recorded one of its strongest weekly rallies in recent memory, climbing from a cycle low of $0.9877 on Aug. 17 to a three-month high of $1.69 by Aug. 22. The move gave $XRP a nearly 70% gain and put it ahead of Bitcoin’s 23.6% and Ethereum’s 28.1% gains over the same period.
$XRP now trades at $1.43, still up 42% over the past week. However, the drop from $1.69 has raised an important question: has the rally run out of steam, or is the current pullback only a short break before another move higher?
Is the $XRP Rally Facing an Exhaustion?
$XRP showed its strongest sign of weakness on Aug. 22. The token reached $1.69 before a wave of liquidations pushed it down to $1.07 within minutes. The 37% intraday drop showed how much leverage had built up during the rally.
Across the wider crypto market, liquidations reached about $1.35 billion over 24 hours, including roughly $500 million in leveraged long positions. Bitcoin fell 2.5% during the same period, while Ethereum dropped 5% and Solana declined 11.5%.
Other market data also points to a possible cooldown. Funding rates turned negative during the crash and have not fully recovered. Derivatives open interest remained around $3.66 billion after the drop, while 72.5% of Binance accounts held long positions at the peak.
$XRP Rally Faces Roadblock
Such a heavy concentration of long positions can increase the risk of another sharp decline. $XRP’s Williams %R reading stood at -4 on Aug. 21, and its daily price moved above the upper Bollinger Band. Both showed that the market had moved too far, too quickly, and may need more time to cool down.
Why the Rally May Only be Seeing a Break
However, $XRP continues to show several signs of strength. At press time, the 20-day EMA stood at $1.2392, the 50-day EMA at $1.1630, and the 200-day EMA at $1.3483. $XRP remains above all three levels, keeping the broader short- and medium-term trend positive.
The MACD line also remained above its signal line, with a positive histogram of 0.0439. Momentum has slowed, but the indicator has not yet confirmed a bearish trend.
$XRP Still Above Key EMAs
On-balance volume also supports the bullish view. $XRP saw more trading volume on its up days than on its down days during the rally, which indicates continued buying interest.
In terms of whale activity, addresses holding between 1 million and 10 million $XRP recently added about 380 million tokens in one week. This level of buying suggests that some large holders still expect more upside instead of an immediate end to the rally.
Key Levels to Decide the Next Trend
The $1.40-$1.42 area now stands as the key support zone. If buyers defend this range, $XRP could spend some time moving between $1.42 and $1.60 as the market absorbs the recent gains and volatility.
However, a sustained drop below $1.42 could instead send the price toward $1.34, where the 200-day EMA may provide support.
On the upside, $XRP needs to break back above the $1.63-$1.70 range to regain its strongest bullish momentum. A clear move above this resistance could put $2.00 back in focus.
The CLARITY Act also remains an important factor. The U.S. Senate plans to hold a cloture vote on Sept. 15, which gives the $XRP community another major event to watch in the coming weeks.
Prediction market Polymarket currently puts the odds of the bill advancing in 2026 at 15%. A positive result could support a move toward $2.00, while a failed vote combined with weakness across the broader crypto market could push $XRP toward $1.20-$1.25.