XRP Price Prediction: XRP Pulls Back After $1.7 Push Stalls, Is the Rally Over?

TradingKey - On August 26, Ripple (XRP) price fluctuated lower, falling over 4% today and dropping below $1.5. Since August 19, XRP price had been continuously rising, surging past $1.7 on August 22, up 70% in less than four days. However, after hitting strong resistance at $1.7 and pulling back, does this mean the rebound rally is completely over?

Is the XRP Price Rebound Over?

Recently, U.S. Treasury Department intervention in the Treasury market raised concerns over U.S. debt deficit monetization and U.S. dollar depreciation. Meanwhile, the Senate's push for the Digital Asset Market Clarity Act and the SEC's release of new cryptocurrency rules resonated to drive a rally in Bitcoin and the broader crypto market. However, Bitcoin pulled back after briefly breaching the key $80,000 mark, dragging XRP down with it, which was the core reason for its decline.

In addition, Bitcoin's high dominance drained most market liquidity, making it difficult for altcoins to sustain continuous, one-sided surges. Moreover, XRPL's daily on-chain transaction volume and network base fee burns failed to show synchronized explosive growth. Under these circumstances, as XRP surged into the $1.50–$1.70 range—a zone of previous multiple peaks and concentrated volume—earlier trapped positions and short-term profit-taking capital chose to exit, generating strong selling pressure.

However, looking at current market dynamics and technicals, XRP's rebound is "not yet completely over," but it has entered a phase of short-term high-level volatility and consolidation. Currently, Bitcoin (BTC) and Ethereum (ETH) maintaining relatively high levels provides overall liquidity support for altcoin rebounds. Furthermore, with the Federal Reserve's interest rate decision and the key vote on the Clarity Act coming in mid-September, the preceding window period is highly likely to sustain the current upward trend.

Where Is XRP Price Headed Next?

The XRP price pullback was not due to a deterioration in its own fundamentals, but was primarily driven by following the broader market correction and profit-taking. Therefore, as long as Bitcoin remains at high levels above $80,000, XRP's price is expected to rise and strengthen again toward $1.7. However, to test this level, Bitcoin will likely need to break through its May high of $83,000 to trigger market FOMO once more.

XRP price chart, Source: TradingView

However, if Bitcoin's price falls below its recent pullback low of $75,000, it will signal to the market whether the rebound has ended, dragging XRP down below its Fibonacci 0.382 retracement support level at around $1.4, with a potential further decline toward $1.3. Of course, if the macroeconomic environment deteriorates, such as the Federal Reserve raising interest rates or the Clarity Act being rejected, there is a high probability that XRP will retest $1.