- XRP has rocketed from below $1 to around $1.50 in under two weeks, turning its advance into one of the crypto market’s biggest talking points. The question now is whether traders should secure some of those gains or stay fully exposed as leverage appears to be driving an increasing share of the move.
- XRP briefly reached $1.69 on August 22 before pulling back toward the $1.50-$1.53 area. By August 23, the token was trading near $1.48, still up 47.77% over the previous seven days. Its market cap stood at $92.95 billion, with $22.45 billion in 24-hour trading volume.
- The broader market has also been supportive. Bitcoin climbed from about $62,000 to $77,000 over the same period, while the Crypto Fear & Greed Index rose to 67, signaling Greed. XRP has simply moved at a much faster pace, helped in part by continued spot ETF inflows.
XRP Momentum Builds as Leverage Raises Risk
- Spot XRP ETFs recorded $18.38 million in net inflows on August 21, with Bitwise responsible for roughly $16.89 million. Weekly inflows approached $40 million, reportedly marking the strongest week for XRP ETFs since May. Cumulative net inflows are now close to $1.55 billion.
- The ETF figures show that real spot demand exists, but the scale remains relatively small compared with XRP’s market capitalization above $90 billion. As a result, derivatives positioning appears to be adding significant fuel to the rally.
- XRP’s technical indicators are also beginning to look stretched. One reading placed the daily RSI at 85.4, while other estimates ranged between 70 and 83. These levels do not guarantee a pullback, but they highlight the speed of XRP’s recent climb.
- Futures positioning is even more striking. XRP open interest jumped 34.49%, adding about $939 million and taking the total to approximately $3.66 billion in a week. Binance data showed 72.1% of accounts holding long positions versus 27.9% short.
- That makes XRP a crowded long trade. Liquidations over 24 hours reached $70.74 million, with bullish positions accounting for $54.68 million, or 77.3%. Over three days, liquidations totaled $145.15 million, while the biggest single liquidation reached $50.27 million on August 22.
- Funding rates remained positive at 0.01% every four hours, translating to an annualized rate of roughly 24.94%. In other words, traders continue paying a premium to maintain long positions even after a wave of leveraged losses.
- Short covering has also played a role in XRP’s rise. About $2.2 million in short positions are currently vulnerable as the token moves through the $1.40-$1.50 zone. However, a rally driven by forced short liquidations is generally less durable than one supported by sustained spot buying.
- That backdrop makes partial profit-taking increasingly attractive. Trimming 20% to 30% of a position could lock in some gains while maintaining exposure if XRP advances toward $1.65-$1.70 or eventually $2.
XRP’s Fundamental Bull Case Remains Intact
- XRP’s bullish story extends beyond price momentum. Ripple CEO Brad Garlinghouse participated in the inaugural meeting of the CFTC’s Innovation Advisory Committee alongside representatives from major financial institutions, describing the group as an “Olympic roster of crypto.”
- The development is notable given Ripple’s years-long legal dispute with the SEC. Still, Garlinghouse’s participation does not represent a legal ruling or official classification for XRP. Likewise, the SEC’s proposed “Regulation Crypto Assets” framework does not resolve the separate Ripple case.
- The CLARITY Act is another potential catalyst. The bill could classify XRP as a digital commodity under CFTC oversight, although political support does not guarantee its passage. Any gap between expectations and actual legislative progress could therefore weigh on the token.
- RLUSD also continues to expand within the Ripple ecosystem. Its market capitalization has risen to about $2.1 billion from approximately $1.5 billion at the beginning of the year. However, RLUSD growth alone does not establish stronger XRP demand because the two assets serve different functions.
- After a nearly 50% gain in less than two weeks, taking some money off the table does not necessarily signal a bearish outlook. It can simply protect realized profits while allowing traders to retain exposure if XRP’s broader rally has further room to run.
