XRP Bulls Bet $2.16B On Rebound As Institutional Demand Stays Weak

XRP (XRP) sits under pressure near $1 with $2.16 billion in fresh long positions, while rapid RLUSD (RLUSD) supply growth offers a possible counterweight to the bearish setup.

Key Points:

$2.16 billion in fresh longs leaves bullish traders exposed below $1.

XRP is down more than 6% in Aug., while its ETFs have drawn just over $3 million in net inflows this month.

RLUSD added $132 million over seven days as XRP price momentum weakened.

XRP Long Risk

XRP began the week by breaking below the critical $1 level, increasing pressure on a market already crowded with leveraged bullish positions. TradingView data cited in the analysis showed nearly $2.16 billion in fresh longs, creating conditions for a liquidation cascade if the token extends its decline.

The token remains far from recovering its July gains. Ethereum (ETH), by comparison, has gained 1.7% in Aug., while SoSoValue data cited in the report showed XRP ETFs attracting just over $3 million in net inflows.

The report treated that contrast as a sign that institutional demand for XRP remains weaker than demand supporting Ethereum during the same period.

The near-term risk is clear. If XRP cannot recover $1, forced liquidations could amplify losses across heavily leveraged long positions, with $0.98 emerging as the next downside level identified in the analysis.

Also Read: BNB Hits $617 Resistance Despite 75% Volume Surge

RLUSD Supply Growth

RLUSD was the fastest-growing asset over the past seven days, adding $132 million, according to Token Terminal, while Ripple recorded the same $132 million increase as an issuer. Stablecoin supply is expanding even as XRP struggles for momentum.

Analysts also pointed to the XRP/ETH ratio, arguing that a technical rebound there could strengthen the case for XRP if broader market conditions improve.

Rising RLUSD supply and on-chain activity could support stronger engagement across the XRP Ledger, giving XRP a better backdrop if the wider crypto market turns risk-on. That does not remove the leverage risk.

XRP’s current setup follows a weak Aug. after a stronger July, with the token down more than 6% this month and trading around the psychologically important $1 area. A sustained recovery above that level would ease immediate pressure, while continued weakness below $1 would keep the $0.98 downside scenario firmly in focus.

Alexey Bondarev

Alexey Bondarev is the Head of Content at Yellow.com, having reported on crypto for the last 10 years. He specializes in in-depth Research and Learn pieces, with a focus on analytical reporting, industry context, and the bigger forces shaping crypto, from the AI era and security technologies to fintech innovation. He believes that everything digital will imminently overcome everything analogue and is working hard to make that come true.