TradingKey - XRP surges 40% to break above $1.40, with a short-term bullish target of $1.60.

On August 21, Ripple (XRP) continued to rebound strongly, surging over 20% intraday to break above $1.40, hitting a new three-month high. Over the past three days, XRP has posted consecutive sharp gains, accumulating a rise of over 40% so far.

This major surge in XRP was primarily driven by a historic turning point in US regulatory policy combined with improving macroeconomic liquidity. In just three days, US spot XRP ETFs saw net inflows of over $17 million, with yesterday's single-day net inflow exceeding $11 million, breaking a two-month record.

Currently, XRP's upward momentum has shifted from an oversold rebound to a bull-dominated trend, while a massive volume of short positions accumulated during the earlier dull consolidation suffered a series of forced liquidations during the rally, further amplifying short-term gains. The price is entering an intermediate platform formed during the previous decline, facing resistance near the $1.40 midline in the short term.

XRP price chart, Source: TradingView

If the market recovers strongly and sentiment remains intact, especially if Bitcoin breaks above $80,000, XRP is expected to gain further and break through this level, challenging $1.60 on the upside. If Bitcoin pulls back to $75,000, XRP could also be dragged down to around $1.20.

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