XRP Price Climbs Above $1.40

Market impact: Moderately bullish, but vulnerable to reversal.

The move above $1.40 appears initially driven by derivative-market mechanics rather than a definitive improvement in XRP’s fundamental outlook. Approximately $2.02 million of XRP short positions were liquidated in one hour versus $1.58 million of long liquidations, creating forced buying and helping price clear the $1.38–$1.40 area. This makes the rally potentially reflexive: if fresh spot demand does not replace liquidated shorts, momentum can fade quickly.

The more constructive element is the combination of stronger XRPL usage and an approaching Batch V1.1 upgrade. The ledger reportedly processed more than 2.34 million transactions in 24 hours, while payment volume reached roughly 1.16 billion XRP. The upgrade, expected to activate on September 29 if validator support holds, is intended to enable bundled transaction operations. These developments can improve the market narrative around network utility, but transaction growth and payment volume do not automatically translate into sustained XRP demand or token-value accrual.

For XRPUSD, the immediate market question is whether the former $1.38–$1.40 resistance becomes support. A sustained hold would strengthen the bullish interpretation and keep $1.50 as the next important upside test. Failure to hold the breakout zone would suggest that the move was primarily a short squeeze, increasing the risk of profit-taking and a return toward the pre-breakout range. The $1.50 level and the September 29 upgrade are therefore likely to act as near-term volatility catalysts rather than guaranteed upside drivers.

The broader crypto market remains relevant: XRP’s recovery followed an earlier regulatory-related selloff and broader market stabilization. Additional regulatory setbacks, weaker Bitcoin-led risk appetite, or disappointing upgrade execution could overwhelm the positive XRPL narrative. Conversely, continued network activity, confirmation that the upgrade activates smoothly, and persistent spot buying would make the move more durable.

What traders should monitor:

spot-versus-derivatives volume, further short liquidations, XRP’s ability to remain above $1.38–$1.40, progress toward $1.50, validator support ahead of September 29, and whether rising XRPL activity persists after the upgrade-related attention fades.