Following new progress in U.S. cryptocurrency legislation negotiations, sentiment toward risk assets has improved, with XRP performing strongly among major tokens. Markets are betting on the Clarity Act advancing in the Senate, driving concurrent gains in Bitcoin, spot ETF inflows, and multiple other tokens.
Legislative expectations are driving a rebound
It was reported that Trump has agreed to an ethics provision that had previously stalled Senate negotiations. The provision is related to the Clarity Act, leading markets to raise expectations for the bill’s progress. On Polymarket, the probability of the bill passing increased from 32% to 43%.
XRP subsequently broke through the resistance level near $1.13, which had repeatedly halted its advance since late June, rising intraday to $1.1511 before settling at $1.1485, up approximately 3.5% on the day. Based on today’s performance, XRP ranked among the top gainers among the top 50 cryptocurrencies by market cap, trailing only Ondo and Cardano.
Improved market data synchronization
This rally is not solely driven by XRP. Following the news, Bitcoin rose above $66,000, and spot Bitcoin ETFs recorded five consecutive days of net inflows totaling over $700 million. A rebound in Asian AI and semiconductor stocks also contributed to a broader increase in risk appetite.
- The intraday high for XRP was $1.1511.
- Daily increase of approximately 3.5%
- Short liquidation volume is approximately $2.93 million.
As the price rose, XRP triggered approximately $2.93 million in leveraged short liquidations. According to reported figures, its market capitalization remains around $68 billion.
The details of the bill are still to be observed.
The market is closely watching this bill, primarily because it could provide clearer regulatory classification for certain crypto assets. The report notes that if the bill proceeds in its current direction, XRP is likely to be officially classified as a digital commodity, thereby alleviating long-standing regulatory uncertainty.
However, the details of the bill's text have not yet been made public, and it remains uncertain whether Democrats will accept the current negotiated version. If the Senate aims to complete its vote before its August recess, time for all parties is limited.
Short-term strength has increased, but the trend remains uncertain.
From a price structure perspective, XRP's short-term momentum has improved, but the trend strength remains relatively weak. The report notes that the ADX, which measures trend strength, is still at a low level, indicating that the current rally has not yet formed a clear directional trend.
Meanwhile, the 50-day moving average remains below the 200-day moving average, indicating that the medium-term trend has not yet fully escaped its weak posture. The Relative Strength Index (RSI) is around 58, suggesting buying pressure is dominant but has not yet entered overbought territory. The volatility compression indicator shows that the market may be entering a new phase of increased volume, making the next several trading days particularly crucial.
Overall, this rally in XRP primarily reflects an emotional recovery following improved policy expectations. If legislative progress continues, the price is likely to remain strong; however, if negotiations face renewed obstacles, short-term selling pressure could increase.