XRP Price Prediction: XRP Jumps Over 20% as $1.5B Short Squeeze and Whale Accumulation Fuel Rally Beyond $1.25

The move has taken XRP above its 50-day simple moving average near $1.07 and placed the $1.25 region at the center of the latest XRP price prediction.

The rally follows a period in which XRP struggled to hold above $1.00. Recent market data showed the token moving from around $1.00 toward the $1.15-$1.25 range, while leveraged positioning was rapidly unwound. More than $1.5 billion in crypto positions were liquidated during the broader market move, adding momentum to the rebound.

XRP is approaching a breakout from a massive falling-wedge accumulation pattern. Source: Babenski on TradingView

Several developments have also improved the regulatory backdrop for the sector. The U.S. Securities and Exchange Commission proposed a new framework that would create exemptions for certain crypto token offerings, while President Donald Trump urged Congress to advance the CLARITY Act during a White House meeting with cryptocurrency executives. Ripple was among the companies represented at the event.

The latest XRP price action has been closely linked to derivatives positioning. Data cited in the supplied market analysis showed XRP perpetual-futures open interest declining while Net Position Delta improved. That combination can indicate that short positions are being closed or liquidated as price moves higher.

XRP’s 1H chart shows a breakout toward $1.22 alongside declining open interest and improving net positioning, suggesting an ongoing short squeeze. Source: @XrpUdate via X

The distinction matters because a rally driven partly by forced short covering can develop quickly but does not necessarily establish a lasting trend. For XRP, traders will therefore be watching whether demand remains after the initial wave of liquidations fades.

The immediate technical test is now the $1.18-$1.25 region. A sustained move through that zone would put the recent recovery on firmer technical footing, while repeated rejection could encourage traders who bought the breakout to take profits.

On-chain activity provides another important part of the current XRP price analysis. Data cited by Ali Charts indicated that large XRP holders accumulated more than 300 million tokens over a 96-hour period, with whale holdings approaching 16.3 billion XRP.

Whales accumulated over 300 million tokens in 96 hours, backed by a Santiment chart showing whale holdings climbing toward 16.3 billion XRP. Source: Ali Martinez via X

The accumulation trend is not entirely new. Earlier data showed large XRP holders continuing to increase their exposure even while the token traded close to $1. CryptoQuant previously characterized the behavior as “quiet accumulation” rather than evidence of an immediate breakout.

Separate Santiment data analyzed by Finbold showed the number of XRP Ledger wallets holding more than 1 million tokens reaching 2,038 on August 12, a multi-month high. That represented an increase of 32 such wallets over three months.

The combination of larger-holder accumulation and improving price action is notable, but it does not guarantee further gains. Whale wallets can increase positions for different reasons, and on-chain accumulation needs to be considered alongside exchange flows, derivatives positioning, and spot-market demand.

Regulatory developments have also become an important part of the latest XRP news. On August 19, the SEC proposed a framework that would make it easier for certain crypto companies to raise capital through token offerings.

The SEC proposed “Regulation Crypto Assets” on August 18, 2026, to clarify rules for certain crypto investment contracts and support responsible capital formation. Source: @SECGov via X

Under the proposal, qualifying issuers could receive a one-time exemption for token sales of up to $5 million over four years, as well as an exemption for offerings of up to $75 million during a 12-month period. The framework would still require disclosures and financial reporting, while a proposed safe harbor could prevent certain crypto assets from being treated as investment contracts if specified conditions are met.

SEC Chair Paul Atkins said the agency “seeks to provide crypto asset entrepreneurs and market participants with clear pathways to raise capital under the federal securities laws.”

The proposal is particularly relevant to the broader XRP and Ripple ecosystem because it represents a shift toward clearer rules for digital assets and token-based fundraising. However, the SEC framework remains a proposal and is subject to a 60-day public-comment period. It should therefore not be treated as a finalized regulatory regime.

The regulatory backdrop received another boost on August 19, when Trump called on Congress to pass a “fair version of the Clarity Act.” The legislation seeks to establish clearer definitions for digital assets and determine the respective oversight roles of the SEC and the Commodity Futures Trading Commission.

The White House event included several major crypto executives and federal regulators. While the meeting improved market sentiment, the CLARITY Act remains stalled in the Senate, meaning its eventual passage is not guaranteed.

From a technical perspective, XRP has improved significantly after reclaiming the 50-day SMA near $1.07. The shorter-term moving averages in the supplied TradingView data were predominantly bullish, with the 10-, 20-, 30-, and 50-period averages carrying buy signals.

XRP price chart. Source: Brave New Coin

Momentum indicators were also constructive. The 14-period RSI stood at 63.76, suggesting positive momentum without yet reaching the traditional 70 level associated with overbought conditions. The 10-period Momentum indicator and MACD were also rated as buy signals.

However, the broader technical picture remains mixed. The 100-period and 200-period moving averages were still rated as sell signals, highlighting resistance from longer-term trend measures. The 200-period EMA stood near $1.34, while the 200-period SMA was around $1.28.

The pivot levels also identify $1.25 as an important technical area. The classic R2 stood near $1.25, while the Fibonacci R2 was around $1.19 and the Woodie R2 near $1.24. A sustained move above $1.25 would therefore represent a meaningful technical development rather than simply another intraday extension.

A TradingView analysis by Babenski also identified a much larger falling-wedge structure on the weekly chart. The analysis noted that the price remains above a multi-year rising trendline and is approaching a potential breakout from the roughly 20-month formation.

The key condition is confirmation. A move above the upper boundary of the wedge followed by a successful retest would provide stronger evidence that the longer-term structure is changing. Conversely, a return inside the wedge would weaken the breakout case.

The latest XRP price prediction therefore centers on whether buyers can establish acceptance above $1.20-$1.25 rather than simply touch the area.

A decisive break above $1.25 could open the way toward the next resistance levels, with the supplied pivot data placing R3 near $1.41. The 200-period EMA around $1.34 could also become an important intermediate barrier if the rally continues.

At the same time, traders should not overlook downside levels. The classic pivot was around $1.09, while support levels were positioned near $0.99 and $0.93. A failure to maintain the recent breakout could bring those areas back into focus.

The immediate setup is therefore clearer than it was earlier in August, but confirmation remains necessary. XRP has regained key short-term moving averages, large holders appear to be accumulating, and a substantial amount of bearish derivatives positioning has been removed. Yet the longer-term trend has not been fully reversed until the price can hold above major resistance.

For now, the $1.20-$1.25 zone is the critical test. Holding above it would strengthen the bullish technical case and make higher XRP price targets more credible. A rejection, however, would suggest that the recent 20% surge was driven primarily by short-covering rather than a fully established new uptrend.