TL;DR
- Market Inflow: XRP attracted $6.7 billion in fresh value overnight, pushing its capitalization from $165.99 billion to $172.72 billion and signaling a rapid shift in investor sentiment.
- Trading Surge: Daily trading volume climbed 39.27% to more than $4 billion, while $3.76 million in short liquidations added momentum and forced bearish traders to cover positions.
- Technical Outlook: The token reclaimed critical levels above the 200-day EMA and pivot point, with traders now watching $2.94 resistance and the $3 psychological barrier.
XRP began the week with a powerful surge, attracting more than $6.7 billion in fresh market value overnight. After dipping to $2.78 on September 28, the token rebounded to $2.85 by the morning of September 29, lifting its capitalization from $165.99 billion to $172.72 billion, according to CoinMarketCap data. The sudden inflow highlights how quickly sentiment can shift in the XRP market, where technical levels and trading activity often dictate momentum.
Trading Volume and Liquidations
The rally was accompanied by a sharp increase in trading activity. XRP’s 24-hour trading volume jumped 39.27% to more than $4 billion, signaling renewed buyer participation after a volatile week. This surge in activity also triggered about $3.76 million in short liquidations, forcing bearish traders to unwind positions. The combination of higher volume and liquidations provided additional fuel for the rebound, reinforcing bullish sentiment in the short term.
Technical Breakthroughs
From a technical perspective, XRP’s move above the 200-day exponential moving average at $2.55 and the pivot point at $2.83 shifted the short-term market structure in favor of the bulls. The relative strength index stood at 47, suggesting room for further upside before entering overbought territory. Traders are now watching the 50% Fibonacci retracement level at $2.94 as the next key hurdle. A successful break above that level could set the stage for a test of the psychological $3 barrier.
Risks and Momentum Signals
Despite the optimism, caution remains warranted. Momentum indicators point to a lingering bearish MACD divergence, which could expose the rebound to a pullback if momentum fades. This tension between bullish enthusiasm and technical caution has been a recurring theme for XRP in recent weeks. Traders remain alert to the possibility that the rally could stall if buying pressure weakens.
Broader Market Context
The overnight inflow underscores the volatility of the XRP market. Just days earlier, the token had been weighed down by delays in ETF approvals and broader weakness across the crypto sector. Now, with billions in new value added in hours and critical levels back in play, market participants are once again speculating whether XRP can finally break through the long-awaited $3 threshold and establish a stronger foundation for a broader rally.
