XRP, the cryptocurrency developed by Ripple for fast and cost-efficient cross-border payments, climbed 7% over the weekend to reach $1.41. Spot trading volume surged to $1.36 billion within 24 hours, marking an almost 90% increase in daily activity.
Short squeeze triggers rally
The upward move followed a significant short squeeze. Data revealed that nearly $8.05 million worth of short XRP positions were liquidated as Bitcoin pushed above $80,000, fueling bullish momentum across the altcoin sector.
Long positions were not immune, with approximately $2.36 million in liquidations. Meanwhile, the broader crypto markets saw roughly $300 million in liquidations as Bitcoin continued upward past the $81,000 mark.
During the same period, XRP futures contracts generated $5.71 billion in volume, more than four times higher than spot activity. When derivatives lead trading dynamics, analysts often highlight potential reversal risks if leveraged positions suddenly unwind.
Despite the price rally, analysts noted the absence of major fundamental catalysts. XRP had previously slipped to the $1.23–$1.30 range earlier in September, following the Senate’s narrow rejection of the CLARITY Act, which aimed to define legal parameters for digital assets.
Technical outlook and resistance levels
Technical analyst Ali Charts stated XRP may be forming an inverse head-and-shoulders pattern on daily charts. He identified the neckline near $1.55 as the key resistance. According to his analysis, a confirmed breakout above this level could drive a 35% surge toward $2.
XRP, currently building the right shoulder of an inverse head-and-shoulders pattern, faces a crucial test at $1.55. Should the breakout materialize above this neckline, analysts see potential for a rally toward $2.
XRP is also nearing a golden cross on its daily chart. The 50-day moving average sits just 2% below the 200-day moving average, marking the closest convergence since August 2024. A golden cross, where the 50-day average overtakes the 200-day average, is often considered a strong bullish indicator, but past golden crosses in XRP have often preceded a reversal within a year.
Mini dictionary: Golden cross – A technical chart pattern where a short-term moving average crosses above a long-term moving average, typically considered a bullish transition signaling upward momentum.
Of the ten golden crosses that lasted for a meaningful period in XRP’s history, five saw gains between 85% and more than 1,000%.
| Golden Crosses in XRP | Return (%) |
|---|---|
| No significant gain | 5 times |
| 85% – 1,000% gain | 5 times |
Institutional inflows and market activity
US spot exchange-traded funds (ETFs) holding XRP have attracted over $1.7 billion in net inflows, signaling robust institutional engagement in the asset class.
Total net inflows for US spot XRP ETFs surpassed $1.7 billion, reinforcing the appeal of the token among institutional investors during the current cycle.
On-chain data also highlighted that about 1.6 billion XRP moved from major wallets into Binance during the last 30 days, reaching a six-month high. Analysts at CryptoQuant observed this activity may relate to portfolio realignment, rather than immediate selling, given Binance’s reserves have reached a 69-day peak.
Bitcoin’s share of the overall crypto market dropped below 59%, a one-month low, as capital shifted to other digital assets. Altcoins such as UNI, NEAR, and ARB all logged approximately 30% gains within the past day.
Ripple recently confirmed the integration of XRP and RLUSD into the AI-based payment solutions of Stripe and Tempo. Additionally, the Moscow Exchange is set to launch XRP perpetual futures contracts on September 22.
Ripple Chief Legal Officer Stuart Alderoty commented that both Ripple and XRP are on strong legal ground, following the failed Senate vote on the CLARITY Act.
Critical resistance levels as the new trading week gets underway are $1.45 and $1.50.
