XRP Price Rises 8.36% as Bitcoin ETF Inflows and Short Liquidations Boost Demand
XRP climbed 8.36% in 24 hours to $1.49 as stronger cryptocurrency market demand, Bitcoin ETF inflows and short liquidations combined with broader altcoin gains to lift buying activity.
CoinMarketCap data cited in the source showed XRP trading volume increased 36.67% to $4.45 billion during the same period. The move came as Bitcoin advanced sharply and capital flowed into several major alternative cryptocurrencies.
Bitcoin rose 5.2%, supported by renewed demand for spot exchange-traded funds. SoSoValue data showed U.S. spot Bitcoin ETFs recorded $433 million in inflows on September 18, reversing earlier withdrawals and contributing to improved market sentiment.
XRP Price Gains as Bitcoin Rally Drives Broader Demand
Bitcoin's rebound provided an important backdrop for XRP's advance. The increase in institutional flows into spot Bitcoin ETFs helped strengthen demand across the broader cryptocurrency market, while XRP gained more sharply during the same period.
The source attributes part of XRP's move to its higher sensitivity to broader market momentum compared with Bitcoin. As traders increased exposure to alternative cryptocurrencies, the rally extended beyond the largest digital asset.
Leverage also played a role. CoinGlass recorded $262 million in short liquidations as rising prices forced traders holding bearish leveraged positions to close them.
The closure of short positions requires traders to buy back the underlying asset, potentially adding to upward pressure during a rapid market move. The liquidations therefore provided another source of buying demand as Bitcoin and major altcoins advanced.
Other large cryptocurrencies also posted substantial gains. Solana rose 7.15%, while NEAR Protocol gained approximately 20.56%. The CoinMarketCap Altcoin Season Index also increased 4.17%, indicating that market participation was broadening beyond Bitcoin.
Ripple's Institutional Expansion Adds to XRP Sentiment
Developments around Ripple's institutional business provided another factor cited in the source as supporting sentiment around XRP.
Reece Merrick, Ripple's managing director for the Middle East and Africa, said earlier in the day that Absa Corporate and Investment Banking had launched Absa Digital Asset Custody using Ripple's custody technology.
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| Source: Xpost |
The announcement does not establish that Absa or other institutions purchased XRP. Instead, it highlights another instance of Ripple's technology being adopted by an established financial institution, particularly in the African market.
That distinction is important because institutional use of Ripple's technology does not necessarily translate directly into demand for XRP.
XRP Faces Resistance Near $1.50
XRP rose from approximately $1.3771 to $1.49 as buyers absorbed pullbacks during the advance. The move has brought the cryptocurrency close to a significant resistance area between $1.50 and $1.55.
Momentum indicators also show that the rally has become stretched. XRP's 14-day Relative Strength Index reached 73.75, placing the token in overbought territory after its rapid rise.
The $1.45 level has become an important near-term support area. Holding above that price could allow XRP to challenge the $1.50-$1.55 resistance zone again.
A break below $1.45, however, could weaken the current structure and expose the cryptocurrency to deeper retracement levels around $1.40 and $1.37.
XRP's latest advance has therefore been supported by several overlapping market factors, including Bitcoin's ETF-driven recovery, leveraged short liquidations, stronger altcoin demand and positive sentiment surrounding Ripple's institutional expansion. Whether the move can continue will depend on sustained buying activity and XRP's ability to hold its nearby support levels.
Writer: Marcus RenfieldCrypto Market Analyst & Onchain WriterMarcus Renfield covers cryptocurrency markets with a focus on onchain data, Bitcoin price action, and emerging market narratives. His writing examines how capital flows, network activity, and broader market structure influence short- and medium-term trends.He aims to provide clear, data-informed analysis for readers seeking a deeper understanding of crypto market dynamics.