Why is XRP price down today after climbing above $1.69?

The token rallied roughly 50% between August 19 and 23, before profit-taking and an unwind of leveraged positions pushed it back below $1.50.

Despite the drop, XRP price remains around 30% above its level one month ago. The question now is whether this is a short-term correction or the end of the rally.

Why did the XRP price climb above $1.69?

Here are the key drivers before XRP’s latest surge. 

US Treasury bond buybacks boost Ripple price

The main catalyst was a broader crypto rally following a major US Treasury announcement. On August 19, the Treasury said it would at least double the size of buybacks for some longer-dated government bonds from September 9. 

The announcement pushed bond yields lower and increased demand for riskier assets. The wider crypto market rallied, including Bitcoin (BTC), Ethereum (ETH) and Cardano (ADA).

Short liquidations and ETF flows support XRP

Ripple (XRP) sharp rise also forced some traders to close short positions, adding to the buying pressure. Wider crypto momentum, crypto exchange-traded funds (ETF) flows and technical breakout buying may have provided further support.

XRP Ledger expansion adds to momentum

While the rally was largely driven by macro factors across the crypto market, XRP was among the strongest performers. Ripple’s continued expansion of XRP Ledger infrastructure provided additional support. Earlier in August, the company invested in ZILO and Licuido to expand tokenised assets and institutional settlement on the network.

Why is XRP price down to below $1.50 today?

After the Ripple (XRP) sharp rally, some traders took profits as the price struggled to move higher. The market was also heavily leveraged, with traders increasingly borrowing money to bet on further gains.

As the price fell, some leveraged positions were automatically closed, adding more selling pressure. Around $38.6 million in XRP long positions were reportedly liquidated as part of a wider $1.35 billion crypto market sell-off. 

XRP ETF inflows continued, suggesting the pullback was mainly driven by profit-taking and leveraged trading rather than weakening institutional demand.

What’s next for the XRP price?

The $1.50 level remains the immediate test. A sustained move above it could bring the recent highs back into view. Continued selling, however, could deepen the post-rally correction. Treasury yields, wider crypto sentiment and XRP Ledger developments are likely to remain the main drivers.

One institutional forecast to watch comes from Standard Chartered. Geoffrey Kendrick, the bank’s global head of digital assets research, expects XRP to reach $2.80 by the end of 2026. However, the bank previously forecast $8, so the new target represents a significant downgrade rather than a near-term prediction.

FAQs about Ripple (XRP) price today

Why is XRP price down today?

Ripple (XRP) price fell as traders took profits following its sharp rally. The decline also triggered closures of leveraged long positions, adding further selling pressure.

Why did XRP price rise above $1.69?

XRP price rose amid falling US Treasury yields, stronger demand for riskier assets and wider crypto market momentum. Short liquidations, ETF flows and XRP Ledger developments also provided support.

Can Ripple (XRP) price rise above $1.50 again?

XRP price could move back above $1.50 if buying momentum returns. However, its next move will depend on wider crypto sentiment, Treasury yields and demand for XRP.

Important information: This informational content is written by Crypto.com and should not be considered as an investment recommendation or advice. Trading cryptocurrencies carries risks, such as price volatility and market risks. Before deciding to trade cryptocurrencies, consider your risk appetite. All forecasting methods, scenarios, and examples are illustrative and subject to market uncertainty.

Past performance offers context but does not ensure future results. Investment outcomes are subject to market volatility, economic changes, and other unpredictable variables.