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.
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