XRP rises 3.25% to $1.1485 amid positive Clarity Act developments, but traders remain cautious as bearish signals persist.
Market Surge Driven by Political Developments
XRP saw a notable increase of 3.25%, reaching $1.1485, positioning it as the third-best performer among the top 50 cryptocurrencies, only behind Ondo and Cardano. This uptick was largely influenced by news that former President Donald Trump had accepted an ethics provision related to the Clarity Act, a piece of legislation aimed at clarifying the status of digital assets. This announcement significantly boosted the probability of the Act's passage, raising Polymarket's odds from 32% to 43% and igniting a broader rally in the cryptocurrency market.
Bitcoin also responded positively, surpassing $66,000 as inflows into spot ETFs exceeded $700 million within five days. This surge coincided with a rebound in Asian AI and semiconductor stocks, contributing to a risk-on sentiment that energized most digital assets.
XRP's Market Performance
Despite XRP's strong performance, which included an intraday peak of $1.1511, traders remain cautious. The cryptocurrency's market cap stands at around $68 billion, and the recent surge led to approximately $2.93 million in liquidations of leveraged short positions. XRP finished the day at $1.1485, reflecting a 3.5% gain.
The Clarity Act's implications are particularly significant for XRP, as it seeks to officially classify the token as a digital commodity, thereby alleviating regulatory uncertainties that have deterred institutional investment. The agreement on the ethics clause is seen as a step forward in advancing discussions on the Act.
Senate Democrats have pushed for provisions that would prevent the president and their family from directly benefiting from cryptocurrency investments, especially in light of Trump's family's involvement in the sector, reportedly earning over $1.2 billion in 2025 alone. A deal on this provision was reached recently, though the exact wording remains undisclosed, leaving the potential for Democratic support uncertain.
Technical Analysis of XRP
While the daily candlestick chart suggests a robust performance, technical indicators indicate a need for caution. The Average Directional Index (ADX) is currently at 12.3, indicating a lack of strong market trends. Despite today's breakout, the existing bearish trend may still be fading, as the directional indicators show a slight bullish tilt.
However, the average price over the last 50 days remains below the 200-day average, indicating a bearish trajectory known as a death cross. For a structural change to occur, XRP would need to push the 50-day exponential moving average above the 200-day average.
The Relative Strength Index (RSI) is currently at 58, indicating bullish conditions without reaching overbought levels. The Squeeze Momentum Indicator has also activated, suggesting a potential increase in volatility after a period of price consolidation. The upcoming sessions will be critical in determining XRP's market direction.
For a bullish trend to establish, XRP needs to close above $1.1343, with targets set at $1.1563 and possibly $1.1843. Conversely, a rejection at current levels could see the price retreat to support levels at $1.1189 and $1.1035.
