XRP Rises 4.7% as Short Liquidations Build Ahead of XRPL Upgrade
XRP rose about 4.7% in 24 hours on October 21, trading between $1.29 and $1.35 as short positions faced forced liquidations. Derivatives tracker TRdesk reported around $4.4 million in XRP liquidations, with roughly $3.6 million—about 80%—coming from shorts. Covering short positions can add buying pressure, but liquidations alone do not explain the price move.
XRP is approaching resistance at $1.35–$1.38. A sustained break above $1.38 could put $1.42 in focus, while a decline below $1.32 may bring support at $1.29 and $1.28 into view.
The rebound comes ahead of the XRP Ledger’s expected October 23 activation of the fixCleanup3_4_0 maintenance amendment. It addresses technical issues involving token permissions, escrow, automated market makers and calculations related to future lending infrastructure. The update does not activate native lending, which still requires separate validator approval. Despite this XRP price recovery and the upgrade catalyst, broader market sentiment and sustained buying demand remain key to whether XRP can reclaim $1.40.
Neutral
The immediate market signal is mildly positive: XRP gained about 4.7%, and short positions accounted for most of the reported liquidations. Forced short covering can add buying pressure, as seen in other crypto-market rebounds where leveraged positions were crowded on one side. However, the reported $4.4 million in liquidations is limited evidence of a durable change in demand, and the article notes that XRP remains below earlier October levels.
In the short term, traders may watch whether XRP can hold above $1.35 and break through resistance at $1.38. A successful move could expose $1.42; failure could bring $1.32 and support near $1.29 back into focus. The October 23 XRPL amendment may affect sentiment, but it is a maintenance update, not the launch of native lending. That lending proposal still needs separate validator approval, so the upgrade should not be treated as confirmation of imminent new XRP utility.
Longer term, the price direction will depend more on sustained spot demand, broader crypto-market conditions and whether institutional interest translates into buying than on this technical patch alone. As with previous upgrade-related rallies, anticipation can support prices temporarily, while gains may fade if the event does not deliver a larger-than-expected change. The balance of a short-term rebound against unresolved resistance and market uncertainty supports a neutral overall assessment.