XRP Reclaims $1.50 as Bitcoin Rally Triggers $300 Million Short Liquidations

XRP (CRYPTO:XRP) has reclaimed the $1.50 threshold, trading at $1.51 after a 7.6% jump in 24 hours, driven by a surge in Bitcoin (CRYPTO:BTC) past $85,000. This broader market movement triggered approximately $300 million in short position liquidations, forcing exchanges to buy back the asset and propelling XRP higher. The rally represents a recovery from the 8% drop seen on September 15, when the Senate blocked the CLARITY Act, and returns the price to levels last seen before that vote.

The price action is largely attributed to an overcrowded short position that built up over the previous week. During that period, XRP funding rates remained negative, meaning short traders were paying long traders to maintain their contracts. When Bitcoin broke above $84,000 and then $85,000 in a single day, these short positions were unwound rapidly. The resulting forced buying created a squeeze that lifted XRP more sharply than Bitcoin, which rose 6.1% to $85,967. However, this buying pressure is mechanical; it stems from other traders' losses rather than sustained spot demand, and may cease once the short positions are cleared.

Despite the daily gain, the weekly performance for XRP is flat at 0.4%, and the token remains down 2.2% over the last 30 days. For the year, XRP is down 18% from its December 31, 2025 closing price of $1.84. The current price of $1.51 sits just below critical resistance levels at $1.52 and $1.55. The $1.55 mark is significant because XRP has not closed above it since August. Until a daily close above this level occurs, analysts suggest that a move to $1.60 remains a theoretical target rather than a chart-based reality.

If the rally loses momentum, support levels are identified at $1.44, followed by the 200-day moving average at $1.35, and then $1.30. The 200-day moving average serves as a key technical indicator; prices holding above it generally encourage buying, while a break below can trigger selling. Although the 50-day moving average is rising toward the 200-day line, the anticipated "golden cross" has not yet occurred.

Three potential scenarios shape the outlook for the remainder of September. The first path requires Bitcoin to remain above $85,000 and XRP to close above $1.55, potentially aided by an XRP Ledger upgrade that validators have been voting on since July. The second, baseline scenario assumes funding rates normalize after shorts are cleared, leaving XRP to settle between $1.50 and $1.55 with flat returns. The third path involves a decline if XRP closes below $1.44, suggesting the recent rise was solely due to short covering. In this case, price could fall to $1.35, a level that coincides with Ripple's scheduled release of one billion XRP from escrow on October 1.