XRP’s 11% Slide Follows a 45% Weekly Surge
XRP fell 11.28% on Monday, August 24, 2026, as profit-taking hit after a remarkable 45% weekly rally. The token had climbed alongside Bitcoin’s surge, which broke above $72,000 last week and reached $79,000 on Friday, August 21. The move was fueled by a short squeeze in Bitcoin, driven partly by the U.S. Treasury’s plan to nearly double its buyback program, a detail first reported by Bloomberg.
The pullback in XRP is a classic correction after an overheated run. Selling pressure emerged as traders locked in gains, and the token gave back some of its recent outperformance relative to the broader crypto market.
Why the U.S. Treasury’s Buyback Plan Fueled Bitcoin
The Treasury’s plan to expand its buyback operations, announced in early August, injected liquidity into financial markets. This liquidity boost helped risk assets, including Bitcoin, which saw a sharp short squeeze as bears were forced to cover positions. According to data from Coinglass, Bitcoin’s open interest spiked by 18% during the week, and funding rates turned negative before the squeeze, signaling that many traders were caught offside.
For XRP, the correlation with Bitcoin remains strong. When Bitcoin moves sharply, altcoins like XRP often amplify the move—both up and down. That amplification is visible in Monday’s drop, which was steeper than Bitcoin’s modest 2% decline on the same day.
Defensive Strategies for XRP Holders
For holders looking to protect against further downside, several defensive tactics are available. One approach is to set stop-loss orders below key support levels, such as the $0.85 mark, which was the breakout point from last week’s rally. Another is to diversify into stablecoins or yield-generating platforms, though investors should be cautious of smart contract risks.
UE Crypto, a platform mentioned in the source, offers diversified digital asset income, but its reliability is unverified. Holders should conduct thorough due diligence before using any new platform. The key is to reduce exposure to a single asset’s volatility while maintaining upside potential if the rally resumes.
What to Watch: Key Levels and the Fed’s Next Move
The immediate support for XRP lies at $0.80, followed by $0.75. A break below $0.75 could signal a deeper correction, while reclaiming $0.90 would indicate renewed bullish momentum. For Bitcoin, the $79,000 level is critical; a sustained move above it could trigger another leg up, benefiting XRP.
The next major catalyst is the Federal Reserve’s rate decision on September 16, 2026. Any hint of further easing could extend the liquidity-driven rally, but a hawkish surprise could accelerate the selloff. Watch for the CME FedWatch tool’s probability shifts—a move above 70% for a cut would likely support risk assets.
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