The shock came from a flash crash on Saturday, August 22, which wiped out approximately US$1.35 billion in leveraged positions across the crypto market in just minutes. Bitcoin fell about 2.5%, Ethereum plunged 5%, Solana corrected by 11.5%, while XRP was the hardest hit, dropping as much as 37% from its peak of US$1.69 to around US$1.50.
Interestingly, amidst the turmoil, Solana was one of the fastest assets to recover. As of today, SOL is trading at around US$95.28, up 2.46% in 24 hours and is now just a hair's breadth away from the US$98–US$100 technical target discussed last week.
Beyond high-risk crypto assets, the digital gold Tether Gold (XAUt) also surged, now sitting at around US$4,592, continuing the gold trend toward a third consecutive weekly gain—albeit with a different narrative and set of drivers than Bitcoin and altcoins.
Below are the details: what triggered the initial rally, what caused the weekend flash crash, why XAUt also rose, which levels are now critical, and which assets recovered the fastest from the shock.
Quick Recap: Three Triggers Behind Last Week's Initial Rally
Before diving into the flash crash, it is important to understand what pushed Bitcoin from below US$65,000 to over US$75,000 in just a few days.
1. The US Treasury Department increased bond purchases. The Treasury doubled its long-term bond buybacks from US$2 billion to over US$4 billion per operation. Bond yields eased, the dollar weakened, and investor funds flowed into risk assets. To understand the link between monetary policy and crypto asset prices, please see our explanation on fiat money and what is devaluation.
2. Liquidation of US$1–US$1.4 billion in short positions. When prices rise rapidly, traders holding short positions are forced to close them by buying, mechanically accelerating the price increase. We explain how to calculate profit and loss for such positions in what is PnL.
3. The White House crypto summit and the SEC's Regulation Crypto Assets proposal. President Trump held a high-level meeting on crypto in conjunction with the SEC proposal submitted on August 18, which includes registration exemption pathways and the concept of a conditional safe harbor for certain crypto assets. This proposal is currently in a 60-day public comment period and is not yet a final rule. To understand the asset categories at the heart of this regulatory debate, please see types of crypto.
These three factors drove Bitcoin to break through the neckline of an inverse head-and-shoulders pattern at $66,600 last week, with a measured target of $76,000—a target that has now been surpassed.
What Just Happened: The Weekend Flash Crash
After hitting the $76,000 target, Bitcoin continued to rally, reaching $79,500 over the weekend—its highest level since the rally began. However, this momentum did not last.
On Saturday, August 22, the market experienced what some analysts called a "high-volatility reset." XRP, which had been the star of the rally with a gain of over 60% in a week, plunged about 37% in just minutes from its peak of $1.69. Approximately $500 million in XRP long positions were forcibly liquidated, and a total of about $1.35 billion in positions across the entire crypto market were wiped out within a 24-hour period, with the heaviest activity occurring on Binance.
Bitcoin was also affected, dropping about 2.5% and dipping to the $77,000 area, triggering the liquidation of more than $475 million in BTC long positions. Ethereum fell about 5%, while Solana corrected 11.5% from its peak of $93.39.
Analysts suggest the primary cause was not a new macro catalyst, but rather structural factors: excessive leverage, thin weekend liquidity, and overly optimistic market positioning. When prices began to turn even slightly, the high-leverage positions held by retail traders were forced to close in succession, accelerating the price decline in a short period.
Current Conditions: Who is Recovering Fastest?
Three days after the flash crash, the recovery picture for each asset varies:
Bitcoin (BTC) is stable around $77,445, up slightly by 0.49% in 24 hours. This price is still 22% higher than a week ago, but about 3% below the $79,500 peak reached before the flash crash. The daily RSI indicator remains in the 80–82 range, staying in overbought territory despite cooling off from its peak.
Solana (SOL) has shown the most convincing recovery, now at $95.28, up 2.46% in 24 hours—it has returned to near pre-crash levels and is just a short distance from the $98–$100 resistance. SOL has broken through its 20, 50, 100, and 200-day moving averages, with the $81 level (200-day average) now serving as long-term structural support.
Ethereum (ETH) is trading around $2,417–$2,458, moving relatively flat (varying between +0.22% and +1.3% depending on the data source) after correcting 5% during the flash crash.
XRP remains the most pressured, hovering around $1.48, down about 0.9% in the last 24 hours. Even so, XRP still records a weekly gain of approximately 47.6%. Levels to watch are $1.42 (38.2% Fibonacci retracement) as the nearest support, and $1.34 (50% retracement) as the next critical support if the pressure continues.
Dogecoin (DOGE) is relatively quiet in the $0.091 range, with 24-hour movements varying across data sources (from -4% to +2%)—indicating high volatility but no clear trend. DOGE is noted to still be holding above an important on-chain support level at $0.081.
Monitor Bitcoin prices today in real-time on Mobee.
XAUt: Digital Gold Rises Too, But With a Different Story
Amid the turbulence of high-risk crypto assets, Tether Gold (XAUt)—a token pegged 1:1 to one troy ounce of physical gold—has also recorded solid gains. XAUt is currently trading at around US$4,592.28, up from US$4,512.23 on August 21, an increase of approximately 1.8% over the last three days. This continues the gold trend, which is now heading for its third consecutive weekly gain.
Interestingly, the drivers behind the XAUt rally partially overlap with those of Bitcoin and altcoins: increased bond purchases by the US Treasury, which have weakened the dollar, have also made gold more attractive. However, there are additional factors specific to gold:
- Increased demand for safe-haven assets amid high market volatility (including last weekend's crypto flash crash).
- Concerns over oil prices related to potential new sanctions on Iran.
- Continued buying by central banks, particularly from China.
Unlike Bitcoin and altcoins, which move wildly with extreme RSI levels and are prone to flash crashes, XAUt's rise is much calmer and more gradual—reflecting its nature as a safe-haven asset rather than a speculative one. Even so, XAUt is still about 18% below its all-time high of US$5,597.10 recorded on January 29, 2026, so technically, there is still room for further upside if the trend of a weakening dollar and safe-haven demand continues. To understand this instrument in more depth, please read Digital Gold Investment: Opportunities, Methods, and Risks.
Small Projects: Vulnerable When Liquidity Is Thin
Last week, a number of small projects such as Velvet (VELVET), ether.fi (ETHFI), Chainlink (LINK), World Liberty Financial (WLFI), and Hyperliquid (HYPE) recorded sharp gains based on their respective narratives—ranging from DeFi infrastructure and Ethereum restaking to pre-IPO perpetual stock market regulations. Hyperliquid's own rise was supported by a combination of macro liquidity easing and a petition to the SEC regarding a regulatory framework for perpetual markets. We discuss its technical architecture in HyperCore to HyperEVM, and its token in Hyperliquid (HYPE).
Small-cap projects like these are the most vulnerable when liquidity thins out over the weekend, as seen in the August 22 flash crash. With a much smaller market capitalization than Bitcoin or Ethereum, the prices of such assets can reverse much faster when leverage in the market is wiped out. This is consistent with our note last week that triple-digit gains in a short time demand extra caution—especially for tokens with limited circulating supply. We discuss the risks more fully in what is token unlock, while the restaking mechanism that supports the ETHFI narrative is explained in our crypto staking guide.
Key Takeaways from This Flash Crash
There is one vital lesson from this weekend: extreme RSI is not just a statistical figure, but a real risk signal. Before the crash, XRP's RSI was recorded at 85.41, Solana at 85.3, and Dogecoin at 79.3—all deep in overbought territory, which is historically prone to sharp corrections.
To learn how to read these signals early, we have compiled guides on how to analyze crypto and what is bullish divergence. We also cover the background of the XRP project in what is XRP.
Key Levels to Watch Now
Bitcoin: immediate resistance is at US$79,000–US$80,000 (the psychological area touched before the crash), with further targets of US$82,000–US$82,800 if it breaks through and holds. On the downside, US$75,000–US$76,000 is now the first support (former resistance turned support), with deeper support at the 200-day moving average around US$70,600–US$71,700, and US$66,600 as the neckline of the inverse head-and-shoulders pattern, which remains a structural defense.
Solana: resistance at US$98 followed by US$100 (a psychological level that could confirm the end of the downtrend since the 2025 peak), with support at US$88 and US$81 (200-day average).
XRP: immediate support at US$1.42 (38.2% retracement) and US$1.34 (50% retracement), with resistance in the US$1.60 area before retesting the US$1.69 peak.
Dogecoin: key support at US$0.081, with potential upside to US$0.177 if that level holds according to several on-chain analysts—though this is a longer-term projection, not a short-term target.
The levels above are editorial technical estimates based on recent price action, not a guarantee of future market direction.
What Determines the Next Direction
Here are a few things worth monitoring over the next few days:
First, whether the market can stabilize without further waves of liquidation. The weekend flash crash demonstrated just how fragile market structures become when leverage builds up too high, too quickly.
Second, whether Solana can confirm a breakout above US$100—this would be a strong signal that the downtrend since the 2025 peak has truly ended, unlike Bitcoin and XRP, which are still in the process of recovering from the crash.
Third, the consistency of ETF fund flows. Last week, Bitcoin and Ethereum ETFs recorded a combined inflow of approximately US$2.6 billion—the strongest week since October of last year—but sustained inflows during a price correction are far more significant than inflows during a price rally.
Fourth, this week's much busier macro agenda: Consumer Confidence, PCE inflation data, the second estimate of Q2 GDP, earnings from Nvidia and several other tech giants, and the debut speech by Fed Chair Kevin Warsh at the Jackson Hole Symposium on Friday. Any surprises from this agenda have the potential to either reinforce or reverse the ongoing recovery.
For a market that moves this fast and is this volatile, Spot Grid allows for automated buy and sell orders within a price range you define yourself, so the results don't rely entirely on perfect timing when market conditions change rapidly, as they did this past weekend. Before you start, it's a good idea to read some basic crypto trading tips and understand crypto bull market cycles so you don't misread the current market phase.
Conclusion
The crypto market today, August 24, 2026, is in a recovery phase after a rally of over 20% in a week ended in a weekend flash crash that wiped out approximately US$1.35 billion in leveraged positions. Bitcoin is now stabilizing around US$77,445, about 3% below its US$79,500 peak before the crash, while Solana has emerged as the most resilient asset, with a quick recovery to US$95.28 and is now approaching the psychological resistance of US$100.
XRP was the hardest hit by the flash crash, falling 37% from its peak, though it still maintains a 47.6% weekly gain. Ethereum and Dogecoin are moving relatively flat as the market seeks a new equilibrium. Beyond that, XAUt has risen more steadily to US$4,592 in line with the weakening dollar trend and safe-haven demand—a reminder that not all "high-performing" assets move with the same patterns and risks.
The main lesson from this weekend: extreme RSI levels above 80 on several assets before the crash were not just numbers, but real warnings that the room for uninterrupted gains had narrowed. With a packed macro agenda ahead throughout the week—from PCE to the Jackson Hole speech—similar volatility could potentially occur again.
Disclaimer. All information in this article is for informational purposes only and is not an investment recommendation. Cryptocurrency prices can change rapidly. Always conduct your own research and align your decisions with your risk profile.
