• XRP has jumped from below $1 to roughly $1.50 in less than two weeks, making the token’s rally a major focus for crypto traders. The bigger question now is whether to secure some gains or continue holding as rising leverage appears to be playing a growing role in the move.
• XRP briefly climbed to $1.69 on August 22 before retreating into the $1.50-$1.53 range. By August 23, it was trading around $1.48, still up 47.77% over seven days. Its market value stood at $92.95 billion, while daily trading volume reached $22.45 billion.
• XRP has also benefited from a strong market-wide rally. Bitcoin advanced from approximately $62,000 to $77,000 over the same period, while the Crypto Fear & Greed Index rose to 67, indicating Greed. XRP, however, has delivered a much stronger move, with spot ETF inflows adding to demand.

XRP Rally Faces Overbought and Leverage Concerns

• XRP spot ETFs brought in $18.38 million in net inflows on August 21, with Bitwise accounting for approximately $16.89 million. Weekly inflows neared $40 million, reportedly the best performance for XRP ETFs since May, while cumulative net inflows approached $1.55 billion.
• The ETF figures confirm that genuine spot buying is taking place. However, those inflows remain relatively modest compared with XRP’s market capitalization of more than $90 billion, suggesting derivatives activity is helping magnify the rally.
• Momentum indicators are beginning to flash caution. One widely tracked daily RSI reading stood at about 85.4, firmly within overbought territory, while other readings ranged from 70 to 83. These levels do not automatically predict a reversal, but they show how rapidly XRP has appreciated.
• The derivatives market presents another warning. XRP futures open interest rose 34.49%, adding around $939 million to reach approximately $3.66 billion over seven days. Binance positioning data showed 72.1% of accounts were long, compared with 27.9% short.
• Such a setup points to a heavily crowded long trade. XRP liquidations totaled $70.74 million over the past 24 hours, with longs responsible for $54.68 million, or 77.3%. Three-day liquidations reached $145.15 million, while the largest individual liquidation was $50.27 million on August 22.
• Funding remained positive at 0.01% every four hours, equivalent to an annualized rate of nearly 24.94%. Long traders are therefore still paying to maintain their positions despite the recent wave of liquidations.
• Short covering has contributed to the upside as well. Around $2.2 million in short positions are exposed as XRP moves through the $1.40-$1.50 range. Still, rallies fueled by forced short covering are typically less sustainable than advances supported by unleveraged spot demand.
• Against that backdrop, taking partial profits could be a sensible strategy. Cutting 20% to 30% of a position near current prices would secure some gains while preserving exposure to a potential move toward $1.65-$1.70 or even $2.

Regulatory and Ecosystem Catalysts Support XRP

• The bullish XRP narrative is not solely based on technical momentum. Ripple CEO Brad Garlinghouse joined the first meeting of the CFTC’s Innovation Advisory Committee alongside representatives from major financial institutions, calling the group an “Olympic roster of crypto.”
• The development is particularly relevant after Ripple’s prolonged legal battle with the SEC. However, Garlinghouse’s committee participation does not establish a legal status for XRP, and the SEC’s proposed “Regulation Crypto Assets” framework does not settle the separate Ripple case.
• The CLARITY Act could provide another potential catalyst by placing XRP within a digital commodity framework under CFTC oversight. However, political momentum is not the same as legislative passage, meaning disappointment could follow if expectations move faster than the bill itself.
• RLUSD is another positive development for the broader Ripple ecosystem. Its market capitalization has grown to around $2.1 billion from roughly $1.5 billion at the start of 2026. That growth, however, should not be viewed as direct evidence of increased XRP demand because RLUSD and XRP have different roles.
• After a gain of roughly 50% in under two weeks, taking some profit does not necessarily mean abandoning the XRP bull case. It can simply protect gains already earned while keeping enough exposure to benefit if the rally continues.