XRP Rallies on Hopes for Clarity Act, but Charts Remain Cautious

Simply put

• XRP saw a rise of 3.25%, reaching $1.1485, placing it third among the day’s top gainers, following Ondo and Cardano.
• News regarding President Trump’s approval of the Clarity Act’s ethics provisions has boosted the likelihood of its passage in the Senate, increasing chances on polymarket from 32% to 43%, leading to a broader uptick in cryptocurrency values.
• Though XRP charts show potential for further gains, there are still bearish indicators that might keep traders on edge.

It was a pretty encouraging day for crypto enthusiasts.

Late on Monday, reports indicated that President Donald Trump had agreed to an ethics provision that had stalled the Clarity Act in the Senate for months. Following this news, spot ETF inflows exceeded $700 million over five days, and a rally in Asian AI and semiconductor stocks contributed to a more risk-friendly environment, uplifting nearly all digital currencies.

XRP has faced more ups and downs than many in the market. Just a few days ago, reports noted that the Ripple-affiliated token had been lagging behind in the market resurgence, sitting under the $1.13 resistance level. However, that barrier was surpassed today.

XRP’s price climbed to an intraday high of $1.1511, maintaining a market cap around $68 billion, and ultimately settling at $1.1485. This prompted approximately $2.93 million in leveraged short positions to be liquidated. The daily increase of 3.5% positioned XRP in third place among the top gainers, right after Ondo and Cardano.

The significance of the Clarity Act for XRP cannot be overstated. The bill aims to officially categorize XRP as a digital commodity, ending the regulatory gray area that’s hindered institutional interest for years. Today’s positive development regarding President Trump’s agreement on the ethics clause enhances discussions surrounding this classification.

For several months, Senate Democrats have been advocating for a provision in the Clarity Act to prevent the president and his family from benefiting from cryptocurrency ventures directly. Since his reelection as president in January 2024, the Trump family has engaged in various crypto businesses, amassing over $1.2 billion in profits just in 2025.

It was reported that the White House, along with Senators Cynthia Lummis and Bernie Moreno, reached a tentative agreement regarding this clause on Sunday. However, the specific wording of this provision hasn’t been made public yet, and whether Democrats will accept this language remains uncertain.

Traders in polymarket have recently increased the likelihood of the Clarity Act’s passage, bringing it up to 43% from a previous low of 32%. The Senate needs to vote on this before the August recess, leaving a narrow window of opportunity.

XRP Price: What the Chart Shows

The daily price action indicates strength, but it requires patience from those analyzing lower levels.

The average directional index (ADX) currently stands at 12.3, which is well below the 25 threshold indicative of a solid trend. This low value signifies that neither bullish nor bearish forces currently dominate the market. It suggests that the existing bearish trend is losing its grip.

Today’s breakout shows some momentum. The directional indicators (DI+ and DI-) are showing positive movements, which slightly favors the bulls, yet it’s not enough to claim a solid upward trend.

The 50-day average still sits below the 200-day average, a situation that traders refer to as a death cross. Short-term averages lagging behind long-term averages often signal a continued decline in the medium-term trend.

Even consistently lighting candles won’t reverse a death cross. Bulls must push the EMA50 above the EMA200 to alter this trajectory.

On a positive note, the Relative Strength Index (RSI) at 58 is encouraging. It indicates we’re in a generally bullish state, as buying pressure surpasses selling pressure, although we haven’t hit overbought conditions above 70. The squeeze momentum indicator is also noteworthy, hinting that volatility might be increasing after a period of compression. The outcome of the next few sessions could lead to significant movements, either way.

For the bullish scenario: if the ADX rises and a daily close above $1.1343 is achieved, the price could target $1.1563 (78.6% of the Fibonacci level) and eventually move towards a full recovery at $1.1843. Conversely, the bearish case suggests a rejection from the current levels might drive the price below critical support zones, with $1.1189 being the first level of defense before hitting $1.1035 as the next key support.