XRP gained 0.93 percent over the last 24 hours to trade at $1.38, moving in close alignment with a broader cryptocurrency market rebound. This upward momentum was primarily driven by a short squeeze that forced bearish traders to cover their positions, creating mechanical buying pressure across major digital assets.
The primary driver behind XRP’s price action was its beta correlation with the wider market. The crypto ecosystem experienced over $265 million in leveraged liquidations within a single day, with nearly 65 percent originating from short positions. This forced covering boosted prices broadly, and Bitcoin’s 1.01 percent rise coincided with XRP’s movement, indicating the move was market driven rather than rooted in coin specific fundamentals. For the rally to sustain, traders should watch for continued spot buying volume to confirm the move extends beyond derivatives activity.
Secondary support came from selective institutional flows and sector rotation. While Bitcoin and Ethereum ETFs recorded notable outflows, capital found its way into altcoin focused funds. XRP ETFs saw a net inflow of $1.48 million on May 20, directed solely into Franklin Templeton’s fund. Concurrently, on chain data suggests a shift in exchange flows, with selling pressure easing on platforms like Bybit and withdrawals exceeding deposits on Binance and Coinbase. This selective accumulation provided relative support for XRP, differentiating it from larger assets facing heavier selling pressure.
Looking ahead, the near term outlook hinges on both technical levels and an upcoming network event. The XRP Ledger’s
FixCleanup3_1_3 technical upgrade is scheduled for May 27, 2026, and could serve as a catalyst if it attracts renewed developer or investor attention. From a technical perspective, XRP faces immediate resistance at its 7 day simple moving average of $1.38 and the more significant $1.39 to $1.43 zone. Support is established at $1.36, the recent range low, with a stronger floor near $1.32. A decisive break above $1.39 accompanied by strong volume could signal a test of higher resistance, while a failure to hold $1.36 might expose the token to a retest of the $1.32 level, particularly if the ledger upgrade does not generate meaningful momentum.In summary, XRP’s modest gain reflects a market wide beta bounce combined with supportive niche flows, rather than a fundamental breakout from its prolonged consolidation phase. The token remains in a neutral range bound trend, and its next significant move will likely require a clear catalyst and convincing volume. The key question for traders is whether XRP can close above $1.39 with conviction following the May 27 upgrade, or if it will revert to the lower end of its multi month $1.32 to $1.50 trading range.
