Ripple’s XRP token saw quite a surge late last month, climbing to $1.66 on August 22, 2026. However, the rally fell short and XRP is currently facing a price dip. CoinGecko data shows that XRP’s price has fallen by nearly 6% in the last week. Despite the price correction, the asset is still up by more than 35% in the 14-day charts and 26.3% over the previous month. Let’s discuss if the latest price dip will pull the popular cryptocurrency any further.
Will XRP’s Price Continue To Dip Further?
XRP’s rally in late August came after Bitcoin (BTC) reclaimed the $80,000 price level after months of struggle. BTC’s rally was fueled by several factors. Firstly, President Donald Trump’s cryptocurrency event at the White House led to a substantial surge in investor confidence. Trump stated that the US plans on buying a large amount of Bitcoin (BTC) and other cryptocurrencies.
XRP rally was further propelled by the US Treasury’s decision to increase bond buy backs. The move led to a spike in liquidity, which trickled into the cryptocurrency market.
However, the upswing seems unsustainable right now. XRP and the larger cryptocurrency market seem to have slowed down. Federal Reserve Chair Kevin Warsh’s hawkish speech at the Jackson Hole event may have led to increased investor worry. Warsh emphasized on rising inflation and hinted at a potential interest rate hike. Higher rates could lead to capital flowing out of the cryptocurrency market. XRP could take another hit if rates are raised further.
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Additionally, the liquidity from the US Treasury’s bond buy backs will have to flow back into its coffers. XRP could take another hit when that happens. We could potentially see XRP fall below the $1 mark once again if both developments come to fruition.