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XRP (CRYPTO: XRP) fell to a cycle low of $0.9877 on August 17, before rallying about 68% to trade above $1.66 four days later. However, the coin couldn’t maintain that level, pulling back briefly to trade at $1.44 on August 22. XRP currently trades around $1.47 and has gained 41.8% in Q3 2026.
With XRP swinging sharply in both directions over the last week, is this the start of a genuine reversal for a token that has spent most of the year in bearish territory, or just a short-lived relief rally whose gains could soon be erased like previous failed recoveries?
How XRP Swung Both Directions in August 2026
XRP spent the first eighteen days in August trading between $0.98 and $1.18, struggling to break out of that range as its major catalyst, the CLARITY Act, wasn’t voted on before the Senate went on recess on August 8. However, the bearish sentiment that pushed XRP below its 20-day, 50-day, 100-day, and 200-day moving averages soon reversed on August 19.
Within three days, from August 19 to midday on August 22,XRP climbed nearly 45%, sending its market cap from around $62 billion to nearly $95 billion. The rally came as U.S. President Donald Trump held a crypto policy summit at the White House, where he called for Congress to pass the CLARITY Act. The U.S. Treasury also announced plans to double its long-term bond buyback from $2 billion to nearly $4 billion, helping push capital towards riskier assets like XRP.
But the rally didn’t last, with XRP suffering a flash crash that pulled its price to $1.44 within minutes on August 22. The flash crash happened after a wave of forced selling hit the broader crypto market, and exchanged closed leveraged long positions that could no longer cover their potential losses. XRP has since stabilized around $1.47, after moving into overbought territory in recent days.
Key XRP Price Levels That Could Confirm the Next Move
WithXRP’s pricetrading around $1.47, the levels around it could determine whether the recent rally continues or fades in the coming weeks. On the upside, XRP first needs to clear $1.50, a level it has repeatedly tested over the last 72 hours, suggesting sellers are active around it.
After overcoming that sell wall, the next major resistance zone is at $1.65-$1.70, which marks a 12% to 16% rally from current levels. XRP then faces stronger resistance at $1.83, which marks a 38.2% Fibonacci retracement between its 52-week low of $0.9877 and 52-week high of $3.18.
However, if XRP fails to hold the $1.40 mark and falls below $1.38, the next key support sits around $1.31. Breaking below $1.31 would weaken the recent recovery and could send XRP toward $1.20, putting most of the rally’s gains at risk and raising the chance of another major sell-off.
Why the CLARITY Act Is Key to Sustaining XRP’s Bullish Momentum
The CLARITY Act remains XRP’s most popular catalyst because it would settle XRP’s regulatory status in law, placing it under the CFTC oversight, which protects it from further SEC claims. The coin rallying every time there is a possible development around the legislation, with the most recent beingDonald Trump’s commentson the bill at the White House crypto policy summit on August 19. The comments were one the drivers behind XRP’s rally to $1.66 on August 22, showing how important the legislation is to XRP’s price performance.
The Senate will vote on the cloture motion filed by Senate Majority Leader John Thune on September 15, just a few weeks away. The cloture vote needs 60 votes to pass, the same as threshold as final passage, so a win on September 15 would be a real signal that the bill can clear the Senate.
If cloture passes and a full Senate vote follows a few weeks later,XRP could be on track for a 1,000% rally, similar to the gains it has recorded after previous major crashes.
XRP’s Next Three Weeks Could Define the Trend
With the Senate vote only three weeks away, the next few weeks could determine whether XRP has finally started a lasting reversal toward its all-time high or is heading for another failed recovery.
If XRP holds above $1.47 into September 15, it could rally more strongly on a successful cloture vote and possibly overcome selling pressure that has capped every recovery attempt in 2026.
For now, XRP remains trapped between roughly $1.31 and $1.50, and the chances of breaking above $1.50 without a catalyst are slim.
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Source: 247wallst.com