{"id":31736,"date":"2026-08-20T20:02:09","date_gmt":"2026-08-20T19:02:09","guid":{"rendered":"https:\/\/investx.fr\/en\/2026\/08\/20\/xrp-best-week-trump-election-bitcoin-short-squeeze\/"},"modified":"2026-08-20T20:02:14","modified_gmt":"2026-08-20T19:02:14","slug":"xrp-best-week-trump-election-bitcoin-short-squeeze","status":"publish","type":"post","link":"https:\/\/investx.fr\/en\/crypto-news\/xrp-best-week-trump-election-bitcoin-short-squeeze\/","title":{"rendered":"XRP Posts Its Best Week Since the Trump Election Rally \u2014 Powered by a Massive Bitcoin Short Squeeze"},"content":{"rendered":"\n

XRP<\/strong> just recorded its best weekly performance since the post-election rally of November 2024. Behind this spectacular surge lies an unexpected catalyst: a wave of massive short liquidations on Bitcoin<\/strong>.<\/p>\n\n\n\n

But on-chain data<\/strong> and ETF flows<\/strong> tell a more nuanced story. Is the momentum built on solid ground, or does it rest on fragile foundations?<\/p>\n\n\n\n

Here’s a breakdown of the mechanics that propelled XRP<\/strong> \u2014 and the signals that call for caution.<\/p>\n\n\n\n

A Bitcoin Short Squeeze That Swept the Entire Market<\/h2>\n\n\n\n

The crypto market just experienced one of its most violent liquidation sessions of the year. Bitcoin<\/strong> triggered a large-scale short squeeze<\/strong>, forcing hundreds of millions of dollars in short positions to unwind in a cascade. This type of event generates a mechanical and brutal wave of buying pressure that rapidly spreads to major altcoins.<\/p>\n\n\n\n

XRP<\/strong> was one of the first beneficiaries of this move. Ripple’s token posted some of its highest single-day gains in months, driven by a broad resurgence in risk appetite. In this environment, traders quickly repositioned their portfolios toward high-beta assets \u2014 and XRP<\/strong> ticks every box: deep liquidity, an active regulatory narrative, and a strong historical correlation with Bitcoin euphoria phases<\/a>.<\/p>\n\n\n\n

\"XRP<\/figure>\n\n\n\n

On a rolling weekly basis, XRP<\/strong> is showing a level of performance not seen since the post-election pump of November 2024 \u2014 a period when anticipation of a Trump<\/strong> administration favorable to crypto triggered a broad market rally. The fact that this level of performance has been reached again, this time on a purely technical catalyst, underscores just how sensitive XRP<\/strong> is to leveraged market moves.<\/p>\n\n\n\n

ETF and Futures: The Data That Tempers the Enthusiasm<\/h2>\n\n\n\n

While the price action is impressive, the underlying market data calls for greater caution. On the spot Bitcoin ETF flows<\/strong> side, net inflows remain positive but show no notable acceleration during the rally period \u2014 suggesting the move was driven more by short covering than by fresh, sustained institutional demand.<\/p>\n\n\n\n

In the futures markets, the XRP funding rate<\/strong> quickly flipped into positive and elevated territory following the surge \u2014 a classic sign of short-term overheating. When the funding rate climbs too fast, long positions become expensive to hold, which can trigger a technical correction even in the absence of any negative catalyst. Data from CoinGlass<\/strong> also shows that open interest<\/strong> on XRP<\/strong> spiked alongside the price, confirming an influx of new leverage \u2014 and therefore an elevated risk of heightened volatility in both directions.<\/p>\n\n\n\n

The XRP<\/strong> options market<\/a> is also displaying a pronounced bullish skew<\/strong>, a sign that traders are heavily betting on the continuation of the move. Historically, this type of extreme positioning often precedes a consolidation phase or partial correction before any sustained recovery. Caution is therefore warranted for those considering entering at current levels.<\/p>\n\n\n\n

XRP: Between a Solid Regulatory Narrative and Borrowed Momentum<\/h2>\n\n\n\n

Beyond the mechanics of the short squeeze, XRP benefits from a fundamental backdrop that remains structurally favorable<\/strong>. The SEC<\/strong> case against Ripple<\/strong> continues to evolve in a direction the market perceives as positive, and ongoing discussions around a spot XRP ETF<\/strong> in the United States are fueling a narrative of institutional legitimization that supports underlying demand.<\/p>\n\n\n\n

Ripple<\/a> also maintains strong commercial activity in the cross-border payments<\/strong> sector, with banking partnerships that anchor the token in real-world use cases \u2014 a compelling argument compared to purely speculative altcoins. This combination of fundamental catalysts and deep liquidity explains why XRP<\/strong> consistently ranks among the first beneficiaries of risk-on phases.<\/p>\n\n\n\n

That said, the current rally bears the hallmarks of borrowed momentum<\/strong> rather than organic accumulation. The coming days will be decisive: if Bitcoin<\/strong> consolidates without a sharp pullback and ETF flows<\/strong> regain momentum, XRP<\/strong> has the fundamentals to turn this technical bounce into a lasting uptrend<\/a>. If not, a correction toward key support levels would be the most likely scenario to watch for.<\/p>\n\n\n\n

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