XRP made a spectacular comeback between August 18 and 22, 2026, rising quickly from about $1.00 to over $1.50, a 50% to 56% increase. The pricing boom was instead driven by a potent mix of macro liquidity changes, strong short-covering, increased ETF demand, and enhanced regulatory attitude across the bigger crypto scene rather than from a single discrete stimulus.
An announcement from the U.S. Treasury outlining plans to increase its long-duration bond buybacks from $2 billion to at least $4 billion each operation starting September 9 was a significant macro driver of the rise. This policy shift pushed long-term yields down, which reduced the opportunity cost of holding risky assets and incentivized capital to move into high-beta coins such as XRP.
As highly concentrated short bets near the crucial $1.00 resistance level were caught off guard, the surge grew explosively. An estimated $2.7 billion to $3 billion in short bets were dissolved across the market around August 19–20 as XRP burst out, therefore causing short-sellers to buy back token supply and so transforming an initial price rebound into a severe, self-reinforcing short squeeze.


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