XRP posted a notable rebound of over 4% on October 21, with its price recovering toward $1.35 as a wave of short seller liquidations hit the market ahead of a key network upgrade for the XRP
XRP posted a notable rebound of over 4% on October 21, with its price recovering toward $1.35 as a wave of short seller liquidations hit the market ahead of a key network upgrade for the XRP Ledger. Market data recorded XRP’s 24-hour gain at 4.7%, with trading activity heavily concentrated in the $1.29 to $1.35 range.
Derivatives analytics revealed that $4.4 million in XRP positions were liquidated within the past day, with approximately $3.6 million attributed to short sellers. TRdesk, a derivatives tracker, reported that around 80% of these liquidations came from short positions. As leveraged shorts are forced to buy back XRP to settle their losses, such events often contribute further upward pressure to the price rally.
XRP’s return to the $1.35 level signals increased volatility, especially as liquidation-driven buying combines with anticipation for the upcoming network upgrade.
Despite this recent bounce, XRP continues to trade below earlier highs from the first half of October. The preceding decline illustrated the severity of the broader market correction even as institutional investors showed ongoing interest in the digital asset.
Technical traders are closely monitoring resistance between $1.35 and $1.38; a clear break above could shift attention toward $1.42. However, if bearish momentum returns and sends XRP below $1.32, the price may target support levels at $1.29 and $1.28.
Price Level Significance $1.38 Key resistance $1.35 Current recovery zone $1.32 Support if price pulls back $1.29 Lower supportAnticipation for the XRP Ledger’s scheduled upgrade on October 23 has intensified market activity. The planned activation of fixCleanup3_4_0 is a maintenance amendment set to address various technical issues, including corrections related to token permissions, escrow transactions, automated market maker operations, and foundational aspects for future lending infrastructure.
According to previous analyses published by blockchain intelligence firm Coinpaper, the upgrade received sufficient backing among validators to initiate the countdown process ahead of implementation.
The current amendment, however, does not enable native lending capabilities on the XRP Ledger. The lending protocol—featuring Single Asset Vaults—remains under separate consideration and will require more validator approvals before it can be deployed.
The distinction carries weight because a full-scale credit market on the XRP network could expand the range of financial products available, but the activation of the fixCleanup3_4_0 patch is only a preparatory measure toward such developments.
Mini dictionary: fixCleanup3_4_0 is a maintenance amendment for the XRP Ledger designed to resolve technical issues, improve calculations for lending infrastructure, and update network mechanics, but it does not itself implement new lending features.
While XRP saw a brief surge, broader uncertainty persists regarding both institutional demand and overall cryptocurrency market sentiment. The US spot XRP ETF market previously attracted inflows for 13 straight weeks, underscoring that consistent investment in regulated products does not necessarily insulate the underlying asset from price corrections.
Ripple, the company behind the XRP Ledger, continues to refine its institutional strategy by exploring uses for XRP as collateral. These measures remain separate from speculative trading and are part of Ripple’s larger approach to expanding utility for the digital asset.
For bullish traders, maintaining support above $1.35 remains critical to challenge resistance at $1.38 and potentially reach $1.42. If the recovery stalls, renewed selling could push prices down to $1.32 or even test the $1.29 support.
The upcoming network upgrade could impact sentiment, but XRP’s next sustained trend will depend on a combination of customer demand, market positioning, and institutional participation.
The outcome of the October 23 amendment, along with continuous institutional activity, is likely to guide XRP price action in the short term, but long-term direction remains linked to broader market dynamics.
The post XRP rebounds 4.7% as $4.4 million in shorts liquidated ahead of XRPL upgrade appeared first on COINTURK NEWS.
