What drove its 47% weekly gains?

XRP price traded near $1.47 on Aug. 24 after gaining 47.5% in seven days, putting the payments focused cryptocurrency on course for its strongest weekly performance since November 2024.

The token rose 1.2% over the previous 24 hours and traded between $1.44 and $1.54, according to crypto.news data. Daily trading volume stood at approximately $4.72 billion, while market capitalization reached $92.3 billion.

The crypto briefly moved above $1.50 before giving back part of the advance. The token remains about 59.6% below its July 2025 record of $3.65, showing that the rally has recovered only part of the previous bear market decline.

Treasury buybacks helped XRP and risk assets rally

The advance began after the U.S. Treasury announced larger liquidity support buybacks for long dated government debt.

Treasury will raise the maximum amount purchased in individual operations from $2 billion to at least $4 billion. The change covers nominal securities in the 10 to 20 year and 20 to 30 year maturity ranges beginning Sept. 9.

The larger operations will remain in effect through Nov. 4, according to the official statement.

Long term Treasury yields initially fell following the announcement, while the U.S. dollar weakened and risk assets advanced. Lower yields can increase the relative appeal of assets that do not provide fixed income, including cryptocurrencies.

Some traders interpreted the move as a possible step toward “yield curve control.” However, Treasury described the operations as liquidity support for parts of the bond market receiving large volumes of eligible offers.

Yield curve control would generally involve a central bank targeting specific interest rates through potentially unlimited purchases. Treasury’s scheduled and capped operations do not meet that definition. Any claim that the announcement confirms future monetary easing remains speculative.

Marketwide short liquidations accelerated the move

The rally coincided with a large reduction in bearish derivatives positions. CoinGlass data cited during the initial breakout showed approximately $1.2 billion in cryptocurrency shorts liquidated within one 24 hour period.

Those liquidations covered the wider cryptocurrency market rather than XRP alone. Available data does not support the claim that nearly $2 billion of XRP short positions were liquidated during the week.

A short liquidation occurs when an exchange forcibly closes a bearish leveraged position because the market has moved too far against it. The resulting purchases can push prices higher, forcing further liquidations and creating a short squeeze.

The crypto also received support from spot demand. As previously reported, large holders accumulated approximately 380 million tokens during the week as XRP Ledger transactions exceeding $1 million increased sharply.

The accumulation data does not identify the owners or their intentions. Large transfers can represent purchases, internal wallet movements, custody changes or exchange activity.

Rising XRP leverage raises reversal risk

The estimated leverage ratio for XRP derivatives on Binance has climbed to its highest level since early 2026, according to CryptoQuant figures.

An increasing ratio means open interest is growing relative to the exchange’s XRP reserves. It does not reveal whether traders are predominantly bullish or bearish, but it indicates that more market exposure depends on borrowed capital.

High leverage can extend a rally when rising prices force short sellers to close. It can also deepen a correction when long positions are liquidated. The token could therefore experience larger movements in either direction while leverage remains elevated.

Meanwhile, the daily chart supports the stronger momentum. XRP’s price breakout was accompanied by volume of 77.59 million tokens, while the Chaikin Money Flow remained positive at 0.13. The Klinger Oscillator stood at 18.31 million, above its 10.1 million signal line, indicating continued buying pressure despite short term profit taking.

Crypto analyst EGRAG Crypto said XRP price remains inside a broader range until it closes above his identified resistance zone. His forecast that the token could eventually reach $6 to $7 assumes another large expansion based on earlier market cycles.

The target is speculative and is not supported by a confirmed breakout. Historical percentage gains do not establish that a similar move will occur again.

XRP price must hold its breakout structure

The immediate resistance area sits between the recent $1.54 high and the next psychological level around $1.60. A sustained close above that region would confirm that buyers remain active after the initial short squeeze.

The first nearby support is around $1.44, the lower end of the latest daily range. A deeper decline toward $1.30 would return the crypto price to the area traded during the earlier stage of the breakout.

XRP’s price 35.2% monthly gain supports the improved medium term structure. However, its 51.5% decline over the past year and continued distance from the record high show that a broader recovery has not been completed.

The U.S. policy outlook also remains relevant. In related coverage, uncertainty surrounding the CLARITY Act continued to weigh on XRP before the latest marketwide rally.

Traders will now watch whether spot demand continues after liquidations subside. The Sept. 9 start of the larger Treasury buybacks, movements in long term yields and changes in Binance leverage will provide the next tests for the XRP price rally.