XRP climbed about 1.5% over the past 24 hours to around $1.37, rebounding from a low near $1.31 as institutional-focused developments in the XRP Ledger ecosystem and steady demand from U.S. spot exchange-traded funds supported sentiment. The move brought XRP closer to the $1.38 area, where prior transaction activity has historically created resistance.
Key takeaways
- Price move: XRP rose roughly 1.5% to about $1.37, after dipping toward $1.31.
- Catalyst: A Bank for International Settlements (BIS) proof-of-concept using the XRP Ledger and continued net inflows into U.S. spot XRP ETFs.
- Key implication: A break above $1.38 would challenge near-term resistance, while the $1.31 area remains the next key support level if momentum fades.
- Supply overhang eased: Ripple relocked part of an escrow release, reducing the portion that could potentially flow into liquid supply.
What drove the move
One pillar behind XRP’s rebound was fresh research involving the XRP Ledger. According to a BIS working paper published Sept. 2, researchers tested a cryptographic proof-of-concept on the XRP Ledger (XRPL) to determine whether official statistical datasets can be verified after publication. The approach involved creating fingerprints of datasets and recording a summary value on-chain, enabling users to confirm publisher identity and detect changes post-publication.
Importantly for market interpretation, the report described XRPL usage in a proof-of-concept setting rather than BIS adoption for production systems. That distinction matters for traders weighing whether the catalyst is institutional validation versus near-term network adoption. Still, the paper provided a new narrative hook tied to verified data workflows, which supported broader optimism in the lead-up to XRP’s move toward $1.38.
At the same time, ETF flows continued to underpin demand. Data cited from SoSoValue showed U.S. spot XRP products recorded an 11th consecutive trading session of net inflows on Sept. 1, drawing another $14.38 million. Over the streak, cumulative inflows were roughly $170 million, taking total inflows since the products launched in November to approximately $1.68 billion, according to the same dataset.
Market reaction and technical levels
Alongside the ETF narrative, XRP also returned to an area associated with prior on-chain accumulation. According to Benzinga, more than 4.8 billion XRP were acquired previously between $1.31 and $1.38. In the past 24 hours, XRP recovered after briefly testing the lower edge of that zone, suggesting that demand was still present as price rebounded.
Traders watching resistance points focused on what would happen if XRP pushed through $1.38. The article noted that clearing $1.38 would place XRP above the upper boundary of the referenced demand zone. It also highlighted another resistance area near $1.60 based on previous transaction activity—an additional hurdle if the rebound extends.
Technical levels also framed the near-term debate. On the daily chart, XRP traded around $1.37 and remained above the lower Donchian Channel boundary at $0.9928. The 21-day Donchian Channel’s upper boundary was reported at $1.5201, which the report flagged as the first major level to regain to extend the August breakout. It also stated XRP was roughly 11% below that level at the time of writing, and that a daily close above $1.52 would leave around $1.60 as the next probable resistance target.
Momentum indicators in the report suggested the recovery was still conditional. The daily Money Flow Index was cited at 44.62, after declining from above 80 during the August surge. The metric had moved below the neutral 50 line as volume tapered from the spike, implying the rebound would need follow-through to keep improving. The same framework said that a sustained move back above 50, paired with strength above $1.38, would signal that buying pressure is returning; a drift toward 30 would raise the odds of another test of $1.31.
On the four-hour chart, XRP was described as consolidating between roughly $1.34 and $1.40 after retreating from late-August highs. The report cited Aroon readings of 80% for Aroon Up versus 16% for Aroon Down, indicating the market still leaned toward recent highs—though it also noted Aroon Up had begun to fall from 100%. It added that XRP would likely need to reclaim and hold above $1.40 to keep that bullish bias intact. The four-hour Chande Momentum Oscillator was reported as rebounding to 18.45, moving back toward positive territory after dipping below zero.
Supply dynamics after Ripple’s escrow move
Another factor aimed at reducing near-term selling pressure was Ripple’s escrow activity. The report said Ripple unlocked 1 billion XRP on Sept. 1, but relocked 700 million XRP into new escrow contracts, leaving 300 million outside the new locks. By increasing the amount returned to escrow, the relocking reduced the portion of the scheduled release that could potentially enter liquid supply, easing concerns that the full 1 billion tokens might immediately weigh on the market.
Bigger picture: what to watch next
For investors, the immediate focus is whether XRP can establish strength above $1.38 and, if so, how it handles the next resistance zone near $1.40 before attention shifts to the daily breakout level near $1.52. If ETF inflows persist while supply overhang remains limited, sentiment could stay supported; if momentum indicators continue to weaken, the market may revisit the $1.31 support area.
Next catalysts to monitor include ongoing U.S. spot ETF flow data, follow-through in XRP’s technical break attempts, and any additional escrow or ledger-related developments from Ripple or institutional entities. Broader crypto market drivers—especially moves in risk appetite and interest-rate expectations—may also influence whether XRP can convert its rebound into a sustained breakout.
