Ripple (XRP) Surges 7% to $1.62... Will September 29th Upgrade Open the Door to $1.70?

▲ Ripple (XRP) ©Go Da-sol

XRP (Ripple) surged 7.49% in one day, reaching $1.62 and significantly outperforming the overall cryptocurrency market's gains. Expectations that the 'Batch' upgrade for the XRP Ledger (XRPL), scheduled for September 29, will enhance institutional payment functionalities have stimulated buying interest. In the short term, breaking past $1.70 has emerged as a key price level that will determine the next upward trend.

According to cryptocurrency market tracking site CoinMarketCap on September 23 (local time), XRP was trading at $1.62, up 7.49% over 24 hours. The main reason for this surge was the confirmation that the XRP Ledger's Batch amendment passed the required 28 validator criteria on September 22, ensuring its activation on September 29. This feature supports atomic settlement, which bundles up to eight transactions into a single unit, ensuring they all succeed or all fail, thereby reducing the risk of incomplete transaction execution. The expectation that it can lower operational risks in institutional and cross-border payments is believed to have driven short-term demand for XRP.

A broader recovery in market risk appetite also contributed to the upward trend. Bitcoin (BTC) rose 1.98% amid approximately $1 billion in inflows into Bitcoin spot ETFs, and a short squeeze (buying pressure occurring to liquidate or cover short positions) further stimulated altcoin investor sentiment. XRP's gain was about 3.8 times that of Bitcoin. Additionally, XRP's official recognition as a 'Digital Commodity' under the regulations of the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) in March was cited as a factor reducing regulatory uncertainty.

Technically, the key is whether the $1.55-$1.60 range can be sustained. XRP is currently trading above its 7-day moving average of $1.42, and its 7-day Relative Strength Index (RSI) has risen to 76.74, entering the overbought zone. If the upward momentum is maintained and the price holds above $1.60, the next target is $1.70, where the 127.2% Fibonacci extension is located. However, analysts caution against the possibility of a temporary consolidation (sideways movement) given the rapid short-term surge.

Conversely, if support at $1.55 fails, profit-taking pressure could increase. Specifically, if it falls below $1.50, there's a possibility of a correction down to $1.43, which is the 50% Fibonacci retracement level. For the market as a whole, sustained inflows into Bitcoin spot ETFs and Bitcoin maintaining above $85,000 are considered key variables for altcoin upward momentum to continue.

Short-term focus remains on the September 29 Batch upgrade. Whether the upgrade is activated as planned and leads to increased on-chain activity will be a major variable determining XRP's next direction. In terms of price, maintaining support at $1.55-$1.60 and breaking past $1.70 are crucial. While the current upward trend is sustained, the RSI is sending an overbought signal, so the possibility of increased short-term volatility also needs to be monitored.

*Disclaimer: This article is for investment reference only and is not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*