Summary
- XRP experienced a 3.25% increase, reaching $1.1485, making it the third-best performer among the top 50 cryptocurrencies, following Ondo and Cardano.
- News of former President Trump agreeing to the stalled ethics provision of the Clarity Act boosted Polymarket's passage odds from 32% to 43%, initiating a rally across the crypto market.
- While XRP charts indicate potential for further gains, there are still bearish signals that may lead to trader hesitation.
It was a favorable day for cryptocurrency holders.
Late Monday, reports indicated that Donald Trump had consented to the ethics provision that had been obstructing the Clarity Act in the Senate, which had been a significant hurdle in prolonged negotiations. Following this news, Bitcoin surged past $66,000, with five-day inflows into spot ETFs exceeding $700 million, complemented by a rebound in Asian AI and semiconductor stocks, contributing to a risk-on sentiment that positively impacted nearly all digital assets.
XRP outperformed many in this surge. As Decrypt noted five days ago, the Ripple-associated token had been trailing the broader market recovery, struggling to break through the $1.13 resistance level that had limited rallies since late June. However, that barrier was finally breached today.
The price of XRP reached an intraday peak of $1.1511, maintaining a market capitalization of approximately $68 billion. This movement triggered about $2.93 million in liquidations of leveraged short positions, and XRP ultimately finished at $1.1485, reflecting a 3.5% gain for the day, placing it third among the top 50 cryptocurrencies, behind Ondo and Cardano.
XRP price data. Image: TradingviewThe implications of the Clarity Act are particularly relevant for XRP. This legislation aims to officially classify XRP as a digital commodity, removing the regulatory uncertainties that have hindered institutional interest for years. Today's positive news regarding Trump's agreement on the ethics clause facilitates smoother discussions moving forward.
Senate Democrats have been advocating for a provision in the Clarity Act that would prevent the president and his relatives from benefiting directly from cryptocurrency investments. Since returning to office in January 2024, the Trump family has engaged in various crypto enterprises, earning the president over $1.2 billion in 2025 alone.
A deal on this provision was reportedly reached between the White House, Senator Cynthia Lummis, and Senator Bernie Moreno on Sunday. However, the specific wording of the provision has not yet been disclosed, leaving the potential for Democratic support uncertain.
Polymarket traders increased the odds of the Clarity Act being passed to 43%, up from a recent low of 32%. The Senate is expected to vote before the August recess, creating a tight timeline.
XRP Price Analysis
The daily candlestick appears robust, but the underlying technical indicators suggest a need for caution.
XRP price data. Image: TradingviewThe Average Directional Index (ADX) is currently at 12.3, significantly below the 25 mark that indicates a confirmed trend. The ADX assesses trend strength without regard to direction, so this low reading implies that neither bulls nor bears dominate the market. In this context, it suggests that the existing bearish trend is fading.
Today's breakout is backed by momentum. The directional indicators (DI+ and DI-) show a slight positive tilt, which favors the bulls, but this alone is not sufficient.
Moreover, the average price over the last 50 days remains below the 200-day average—a phenomenon known as a death cross. This suggests that the medium-term trend is still downward. The exponential moving averages help smooth price data over time; when the shorter average is below the longer one, it indicates a bearish trajectory.
A single daily candlestick does not reverse a death cross. For a structural change, bulls must push the EMA50 above the EMA200.
The Relative Strength Index (RSI) stands at 58, indicating a positive aspect—it's in bullish territory, signifying that buying pressure currently outweighs selling, without reaching the overbought threshold above 70. The Squeeze Momentum Indicator has also activated, suggesting that volatility is beginning to increase after a period of tight price movement. The next two or three sessions will be crucial for determining the market's direction.
The bullish scenario involves a daily close above $1.1343 with an increasing ADX, aiming for $1.1563 (the 78.6% Fibonacci level) and potentially recovering to $1.1843. Conversely, the bearish outlook suggests that a rejection from current elevated conditions could pull the price back into the golden zone, with $1.1189 as initial support and $1.1035 as the next significant level below it.
Disclaimer
The insights and views provided by the author serve solely for informational purposes and should not be considered financial, investment, or other forms of advice.