Why Is XRP Going Up? XRP Posts Its Best Weekly Rally Since 2024

Summary

XRP has become one of the strongest-performing major cryptocurrencies in the latest market rebound.

CoinDesk reported on August 23 that XRP had surged around 51% from Monday to approximately $1.50, putting it on track for its best weekly performance since November 2024. By August 24, XRP remained around $1.48 and was approximately 46% higher over the preceding seven days.

The rally is being driven by a combination of broader market liquidity expectations, aggressive short covering and renewed attention to the Ripple ecosystem rather than one isolated event.

How Much Has XRP Rallied?

The speed of the move is what has attracted attention.

According to CoinDesk's August 23 market analysis:

• XRP gained about 51% from Monday;
• Bitcoin rose about 22% over the comparable period;
• Ether gained around 30%;
• Solana advanced around 28%.

XRP therefore materially outperformed other large-cap crypto assets during the rally.

That performance is particularly significant because XRP had previously lagged much of the broader crypto-market rebound.

Driver 1: The U.S. Treasury Bond Buyback Shock

One of the biggest macro catalysts came from the U.S. Treasury market.

The Treasury announced plans to buy back at least $4 billion of longer-duration 10- to 30-year bonds on multiple occasions between September 9 and November 4, doubling the previous $2 billion cap.

The operation is formally aimed at Treasury-market liquidity rather than cryptocurrency.

However, markets interpreted the larger buybacks as potentially supportive of lower long-term yields.

That matters for crypto because declining yields or easier financial conditions can improve the relative attractiveness of higher-risk assets.

Driver 2: Nearly $2 Billion in XRP Short Liquidations

XRP's rally was amplified by derivatives positioning.

CoinDesk cited Coinglass data showing that nearly $2 billion of XRP short positions had been liquidated during the week.

When a trader holding a leveraged short position is liquidated, the position must be closed.

During a rapidly rising market, this can create additional buying pressure and produce a feedback loop:

price rises → shorts liquidate → forced buying → price rises further

This is why short-squeeze rallies can move much faster than ordinary spot-market accumulation.

Driver 3: Ripple and RLUSD Institutional Expansion

XRP also benefited from renewed attention to Ripple's institutional strategy.

Ripple is backing a planned institutional credit initiative involving RLUSD, Clearpool and Cicada Partners. The structure is intended to facilitate working-capital lending in RLUSD using XRP Ledger infrastructure.

The development should not be presented as the direct cause of XRP's price move, but it strengthens the narrative that Ripple is trying to build a broader institutional financial ecosystem around XRPL.

MEXC Blog previously examined how RLUSD has contributed to increasing XRP Ledger activity in XRP Payments Double as Network Activity Jumps: But Where Is the Price?.

Driver 4: XRP Was Coming From a Depressed Base

Another reason XRP could move so aggressively is that it had fallen substantially before the rebound.

CoinDesk noted that XRP traded below $1 earlier in August after having reached a much higher level during 2025.

When an asset has experienced sustained negative sentiment, derivatives positioning can become heavily bearish.

If the macro environment suddenly reverses, crowded bearish positioning can become fuel for an unusually fast rebound.

Is This the Start of a New XRP Bull Market?

It is too early to conclude that.

Despite the size of the weekly rebound, CoinDesk noted that XRP remained far below its 2025 peak.

A one-week rally can:

• repair momentum;
• remove excessive shorts;
• improve sentiment;
• attract new capital.

But establishing a durable bull trend normally requires stronger evidence over a longer period.

Investors may therefore want to monitor whether XRP can maintain higher price levels after the short-liquidation effect fades.

What Could Support XRP After the Short Squeeze Ends?

If the rally is to become more durable, attention is likely to shift from derivatives positioning toward fundamentals.

Potential indicators include:

• sustained XRP Ledger transaction growth;
• RLUSD circulation and settlement volume;
• institutional use of Ripple payment infrastructure;
• development of XRPL lending and tokenization;
• ETF capital flows;
• broader crypto-market liquidity.

MEXC Learn's Should I Buy XRP Now? What You Need to Know Before Investing provides further background on XRP's institutional infrastructure and risk factors.

What Could Reverse the XRP Rally?

The same mechanisms that accelerate a rally can work in the opposite direction.

Potential risks include:

• profit-taking after a 40%–50% weekly gain;
• renewed increases in Treasury yields;
• declining Bitcoin momentum;
• falling spot trading volume;
• derivatives leverage rebuilding too quickly;
• delays in Ripple ecosystem initiatives.

Investors should therefore distinguish between strong momentum and low risk. XRP remains a volatile cryptocurrency even after a major technical breakout.

FAQ

Why is XRP going up today?

The current XRP rally has been supported by broader crypto strength, changing Treasury-market liquidity expectations, substantial short liquidations and improving sentiment around Ripple's institutional ecosystem.

How much has XRP gained this week?

XRP gained roughly 50% at one point during the week, its strongest weekly performance since November 2024.

How much XRP short interest was liquidated?

CoinDesk cited data indicating nearly $2 billion of XRP shorts were liquidated during the rally.

Did RLUSD cause the XRP rally?

There is no evidence that RLUSD alone caused the rally. The broader market rebound and short squeeze were major factors.

Can XRP keep rising?

It can, but no continuation is guaranteed. Investors should watch spot demand, leverage, macro conditions and XRP Ledger adoption rather than relying solely on short-term price momentum.