XRP Price Surges 4% in Fresh Crypto Rebounds
Ripple (XRP) reboots with a fresh rally on Monday, rising by about 4% to $1.3425 in 24 hours on renewed bargain hunting and more than 75% increase in trading volume to $1.84 billion.
Bitcoin (BTC), Ethereum (ETH), and BNB are in an uptrend, reflecting optimism that has also supported bargain hunting in other altcoins.
With a market capitalisation of $82.51 billion on Monday, XRP’s movement aligned with market conditions, with the total value of all digital assets rising by 2.73% in 24 hours.
Crypto traders reacted positively to news that the U.S., Iran, and mediators were discussing a potential 45-day ceasefire to ease geopolitical tensions.
Trading data showed that Bitcoin jumped 3% to over $69,000, squeezing $196.7 million in short liquidations. XRP, with a near-identical 3.5% gain, moved as part of this market-wide rotation.
While some analysts noted a potential short-squeeze setup with rising open interest and negative funding rates for XRP, this derivatives data was reported on April 5 and appears more as a backdrop condition than the immediate catalyst for the 24-hour move.
The timing and volume spike align more closely with the market-wide rally. The move was not driven by XRP ecosystem news, regulatory developments, or unique on-chain activity.
Technically, XRP broke a bearish trend line near $1.31 and is testing the 78.6% Fibonacci retracement level at $1.35. The immediate trigger is whether the geopolitical optimism holds.
If XRP closes above $1.35, it could target the 50-day average at $1.38 and the key $1.60 resistance. However, failure to hold the $1.30–$1.32 support zone risks a drop toward the swing low of $1.28 and potentially $1.15.
XRP’s gain is a function of a relief rally in crypto, not internal fundamentals. Its path is tied to Bitcoin’s ability to sustain its bounce. Trading data showed that in the final week of March and the start of April, spot XRP ETF flows were mixed, mirroring broader market volatility.
Data showed $2.31 million in outflows on March 30, zero flows the next day, $1.32 million outflows on April 1, and a small $64,600 inflow on April 2. Throughout this period, XRP’s price held around $1.30, indicating a disconnect between modest ETF activity and stable spot prices.
Analyst Maartunn has highlighted a setup conducive to a short squeeze. As of April 5, aggregated open interest for XRP futures and options surged above 943 million, while funding rates remained negative at -0.0010%.
This signals a large influx of new capital, primarily opening short positions, creating a crowded bearish trade. What this means: This is bullish for XRP in the near term, as any upward price movement could trigger cascading liquidations of these short positions, forcing buyers to cover and potentially causing a sharp, rapid price increase.
XRP has been trading in a tight range between $1.30 and $1.35 for approximately 59 days, following a prior rally. XRPL developer Bird noted this prolonged consolidation indicates market indecision and liquidity buildup, which historically precedes a significant, volatile breakout.
This is a pivotal technical setup for XRP. The extended compression suggests weakening selling pressure and potential accumulation, increasing the probability of a strong directional move.
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