XRP Plunges Over 11% in Bearish Trade Following Weekly Rally

XRP witnessed a significant downturn over the weekend, plummeting by over 11% in a bearish trade. According to the Investing.com Index, XRP's price fell to $1.4745 by 05:00 (04:00 GMT) on Sunday, August 23, 2026, marking an 11.28% loss for the day. This represented the largest one-day percentage decline since February 5, occurring after a remarkable 46.85% rally in the preceding week.

The downward movement pushed XRP's market capitalization down to $92.5315 billion, accounting for 3.56% of the total cryptocurrency market cap. Over the past twenty-four hours, XRP traded within a range of $1.4626 to $1.5186. This drop followed a flash crash on Saturday, August 22, where XRP plunged 37% in minutes due to approximately $500 million in leveraged long position liquidations. Analysts attributed this sudden downturn to high leverage, thin weekend liquidity, and overly bullish positioning in the market.

This correction came after XRP had surged over 60% in the prior week, briefly touching $1.69. The rally was fueled by institutional inflows, regulatory optimism, and a broad market short squeeze. Notably, the U.S. Treasury's decision to at least double its bond buyback program and President Donald Trump's meeting with crypto market leaders on August 19, where he urged Congress to pass the CLARITY Act, contributed to a surge in XRP's price, with a 19% jump above $1.20 within 24 hours of the meeting.

The broader cryptocurrency market also saw declines, with Bitcoin (BTC) falling 1.98% to $76,932.1 and Ethereum (ETH) dropping 4.05% to $2,414.03. This indicates that XRP's decline was part of a wider market correction rather than an isolated event, particularly in a market characterized by high leveraged trading. Analysts often note that XRP has historically struggled to maintain upward momentum compared to major cryptocurrencies like Bitcoin and Ethereum, frequently encountering challenges from capital rotation and technical resistance levels.

Market analysts and AI-powered forecasting models offer mixed signals for XRP's short-term outlook. Some models had previously projected XRP to trade around $1.01 by the end of August. While the settlement of Ripple's lawsuit with the U.S. Securities and Exchange Commission (SEC) in August 2025 provided some clarity regarding institutional sales, broader regulatory uncertainties continue to influence market sentiment. Moving forward, the levels of leverage in the market, prevailing macroeconomic conditions, and regulatory developments in the U.S. will be crucial factors in determining XRP's price trajectory.