Introduction
The XRP price has bounced sharply after one of the cryptocurrency market’s most important psychological levels came under pressure.
XRP traded at $1.1018 on Wednesday, up 10.17% on the day, marking its biggest one-day percentage gain since February 6, according to Investing.com. The token’s 24-hour range stretched from $0.9958 to $1.1019.
The rebound came just days after XRP slipped below $1 for the first time since 2024, highlighting just how quickly sentiment has changed.
Now, XRP is being pulled higher by the same forces driving the broader crypto market: improving liquidity, falling Treasury yields and a wave of forced position closures.
FXStreet reported that XRP was trading above $1.08 Thursday after gaining more than 10% the previous day, while the broader crypto market saw almost $3 billion in liquidations.
The question for traders is no longer simply whether XRP can reclaim $1.
It is whether the rebound can survive after the short squeeze runs its course.
Background and Context
XRP has had a difficult 2026.
The token recently fell below $1, a level that had acted as an important psychological floor for traders. The Motley Fool reported that XRP’s price had fallen by nearly 50% during 2026 as of its August 19 coverage.
That weakness created a stark contrast with XRP’s previous cycle.
The token reached an all-time high of $3.66 on July 18, 2025. At $1.1018 on August 19, XRP remained nearly 70% below that record, according to Investing.com’s market data.
The result has been a market caught between two competing narratives.
One argues that XRP’s long-term institutional and payments story remains intact.
The other points to the token’s dramatic drawdown and questions whether the market has become too optimistic about Ripple’s broader ecosystem.
The latest rally has temporarily shifted the balance toward the bulls.
Latest Update: XRP Price Jumps 10%
The XRP price surged more than 10% Wednesday, reaching $1.1018 by 16:55 GMT, according to Investing.com. The move represented XRP’s strongest one-day percentage gain since February 6.
The rally also pushed XRP’s market capitalization to approximately $67.8 billion.
Trading volume reached roughly $2.13 billion during the 24-hour period covered by Investing.com, equivalent to about 2.41% of total cryptocurrency trading volume.
The move was not isolated.
Bitcoin was up about 7% in the same period, while Ethereum gained more than 15%, according to Investing.com’s market data.
That matters because XRP’s rebound appears to be part of a broader market event rather than an XRP-only catalyst.
Read the Investing.com XRP rally report
The $1 Level Is Back in Focus
XRP’s move through $1 is psychologically important.
Round numbers tend to attract attention in crypto markets because traders use them as reference points for support, resistance and sentiment.
FXStreet’s technical analysis placed XRP above its 50-day exponential moving average at approximately $1.076 on Thursday. It identified $1.00 and $0.995 as important support areas, while the 100-day EMA around $1.153 represented the next major resistance.
That creates a relatively clear technical map.
If XRP remains above $1, the rebound has a stronger chance of developing into a sustained recovery.
If the token falls back below that level, the latest move could prove to have been largely driven by forced buying.
The next major hurdle is around $1.153.
Beyond that, FXStreet identified $1.30 as another important resistance level, followed by the 200-day EMA around $1.338.
Why XRP Is Rallying Now
Treasury Buybacks Changed the Liquidity Picture
One of the biggest catalysts came from Washington.
The U.S. Treasury announced that it would double the size of some buyback operations supporting liquidity in longer-dated Treasury securities.
The operations are set to increase from $2 billion to at least $4 billion per transaction for certain longer-maturity debt, according to Reuters reporting cited by FXStreet.
The immediate effect was a decline in long-term Treasury yields.
That mattered for crypto.
When financial conditions become less restrictive, investors can become more willing to move into higher-risk assets.
FXStreet said the improved liquidity conditions helped trigger a short squeeze across XRP and Stellar, amplifying their gains.
The Short Squeeze Added Fuel
The rally was also intensified by liquidations.
FXStreet reported that 172,642 traders were liquidated over the previous 24 hours, with total crypto liquidations exceeding $2.99 billion.
This is an important distinction.
Not every dollar of the rally represents a new investor deciding to buy XRP.
Some buying is mechanical.
When leveraged traders are forced out of losing positions, their positions can be closed automatically. That buying or selling pressure can accelerate an existing move.
In XRP’s case, the broader market rally helped push the token higher, while the liquidation cycle added momentum.
XRP’s Technical Picture Is Improving
The latest technical setup is considerably stronger than it was when XRP was trading below $1.
FXStreet reported that XRP had reclaimed the broken downtrend resistance around $0.995 as support and moved above its 50-day EMA.
Momentum indicators were also improving.
The relative strength index was around 63, approaching overbought territory, while the moving average convergence divergence indicator had moved above zero.
That suggests buyers have regained control of the short-term trend.
But it does not guarantee that the rally will continue.
The 100-day EMA around $1.153 remains an important barrier.
A sustained break above that level would make the recovery more convincing.
Expert Analysis: Recovery or Relief Rally?
The most important question surrounding XRP is whether this is the beginning of a trend reversal.
There are reasons for optimism.
XRP has reclaimed $1.
The token has moved above its 50-day EMA.
Momentum has improved.
The broader cryptocurrency market is also moving higher.
But there are reasons for caution.
The rally occurred during a massive liquidation event.
XRP remains far below its 2025 record.
And the token still faces resistance around $1.153 and $1.30 before the chart begins to look substantially different.
That makes the next phase more important than the initial bounce.
A squeeze can produce spectacular gains.
A sustained trend requires buyers to remain after the leverage disappears.
The Google Trends Spike Tells a Similar Story
The supplied Google Trends screenshot shows search interest for XRP price accelerating sharply during the latter part of the 24-hour period.
The trend breakdown includes:
- XRP
- XRP news
The timing is notable.
Search interest rises alongside the sharp price recovery, suggesting that the move has pulled attention back toward an asset that had recently been under pressure.
This is a familiar pattern in cryptocurrency markets.
Price creates attention.
Attention brings new participants.
New participants can increase volatility.
And volatility can create another wave of price movement.
The feedback loop is particularly powerful when an asset is hovering around a psychologically important level such as $1.
Broader Implications
XRP Is Becoming Increasingly Sensitive to Macro Liquidity
The latest move shows that XRP does not need a major Ripple-specific announcement to experience a large price swing.
Broader liquidity conditions can be enough.
Treasury yields, dollar strength, institutional risk appetite and crypto leverage are all becoming important variables in XRP’s short-term price behavior.
That means XRP increasingly trades as part of a broader risk-asset ecosystem.
The Crypto Market Remains Highly Leveraged
The almost $3 billion liquidation figure reported by FXStreet is a reminder of how much leverage remains embedded in cryptocurrency markets.
Leverage can work in both directions.
It can accelerate a crash when prices fall.
It can also turn a rebound into a vertical rally when traders are positioned incorrectly.
That makes headline percentage gains difficult to interpret without looking at market structure.
The $1 Psychological Level Matters
XRP’s return above $1 is more than a round-number headline.
It is a test of whether traders are willing to defend a level that recently failed.
If $1 becomes support, sentiment could improve substantially.
If it becomes resistance again, the recent rally may look more like a temporary relief move.
For coverage of the technology, markets and digital-asset infrastructure behind these moves, an internal link to The Tech Marketer would fit naturally here.
Related History and Comparable Technologies
XRP occupies a distinctive position in the cryptocurrency market.
Unlike Bitcoin, which is primarily positioned as a decentralized monetary asset, XRP has long been associated with payments and cross-border settlement through the broader Ripple ecosystem.
That difference has influenced how investors evaluate the token.
Bitcoin’s investment narrative often centers on scarcity, institutional adoption and macroeconomic conditions.
XRP’s narrative has historically included financial infrastructure, payment networks, regulatory developments and Ripple’s institutional relationships.
Yet the latest price action demonstrates that the distinction becomes less important during major market-wide liquidity events.
When Bitcoin, Ethereum and major altcoins rally simultaneously, XRP can become part of the same risk-on trade.
That is exactly what the latest move appears to show.
What Happens Next for the XRP Price?
The next few trading sessions could determine whether XRP’s rebound has real staying power.
Level 1: $1.00
This is the first level to watch.
If XRP holds above $1, the market has a stronger case for treating the recent breakdown as a false move.
Level 2: $1.153
FXStreet identifies the 100-day EMA near $1.153 as the next major resistance.
A clean break above it would strengthen the recovery narrative.
Level 3: $1.30
The $1.30 area represents another important technical barrier.
A move beyond that level would materially improve the medium-term chart structure, although it would still leave XRP well below its previous all-time high.
The Bigger Question
Ultimately, XRP needs more than a short squeeze.
It needs sustained demand.
That could come from improving crypto liquidity, institutional activity, regulatory clarity or renewed confidence in the broader Ripple ecosystem.
For now, traders have a simpler question to answer:
Can XRP stay above $1 after the forced buying fades?
Conclusion
The XRP price has staged a powerful recovery, climbing more than 10% in one day and moving back above $1 after recently falling below that level for the first time since 2024.
Investing.com recorded XRP at $1.1018 on Wednesday, up 10.17%, its strongest one-day percentage gain since February 6.
The rally coincided with a broader crypto surge after the U.S. Treasury expanded longer-term bond buybacks, improving liquidity conditions and helping trigger a major short squeeze.
FXStreet reported nearly $3 billion in crypto liquidations over 24 hours, while XRP itself climbed above its 50-day EMA.
But the rebound is not yet a confirmed reversal.
The $1 level must hold.
The $1.153 resistance zone needs to break.
And ultimately, XRP needs sustained demand that extends beyond leveraged traders covering short positions.
For now, the market has delivered a dramatic reversal.
The next challenge is proving it can last.
FAQ
What is the XRP price today?
XRP was trading above $1.08 on Thursday, according to FXStreet’s latest market analysis, after rising more than 10% the previous day. Investing.com had recorded XRP at $1.1018 Wednesday.
Why is the XRP price rising?
The rally is being driven by broader cryptocurrency strength, improved liquidity following expanded U.S. Treasury buybacks and a crypto-wide short squeeze.
Did XRP fall below $1?
Yes. Recent coverage from The Motley Fool reported that XRP had fallen below $1 for the first time since 2024.
What is XRP’s next resistance level?
FXStreet identifies the 100-day EMA around $1.153 as the next major resistance, followed by a horizontal resistance area around $1.30.
Is $1 important for XRP?
Yes. The $1 level is an important psychological and technical reference point. Holding above it could strengthen the recovery case, while falling back below it could weaken the recent rebound.
How much has XRP fallen from its all-time high?
At $1.1018, XRP was approximately 69.86% below its $3.66 all-time high recorded on July 18, 2025, according to Investing.com.
What caused the crypto short squeeze?
The U.S. Treasury’s decision to expand certain long-duration bond buybacks improved liquidity conditions and helped increase risk appetite. The resulting crypto rally forced leveraged traders to close positions, amplifying price gains.
Sources & References
- Investing.com: “XRP Climbs 10% In Rally”
Read the Investing.com report - The Motley Fool: “XRP Falls Below $1 For First Time Since 2024. Here’s What Investors Need to Know.”
Read the Motley Fool report - FXStreet: “Ripple and Stellar outlook: Extend gains as expanded US Treasury buybacks trigger crypto short squeeze”
Read the FXStreet analysis
