XRP saw a notable price increase late Monday, coinciding with reports that President Donald Trump has agreed to an ethics provision related to the Clarity Act. This development, if it leads to the act’s passage, could formally classify XRP as a digital commodity, potentially resolving long-standing regulatory ambiguity.
Broader market sentiment also showed a risk-on tone, with Bitcoin climbing above $66,000 and five-day spot ETF inflows surpassing $700 million. XRP, however, experienced a more pronounced reaction, reaching an intraday high of $1.1511 and settling at $1.1485, a 3.5% intra-day gain. This performance positioned XRP among the top gainers in the top 50 digital assets, trailing only Ondo and Cardano.
The Clarity Act holds particular significance for XRP due to its potential to classify the token as a digital commodity. Reports indicate that negotiations have focused on a provision proposed by Senate Democrats, which aims to prohibit the president and his family from directly benefiting from cryptocurrency ventures. Since January 2024, the Trump family has reportedly been engaged in various crypto-related businesses, with projections suggesting potential earnings exceeding $1.2 billion for 2025. On Sunday, the White House, Senator Cynthia Lummis, and Senator Bernie Moreno reportedly reached an agreement on the language for this provision.
However, significant uncertainties persist. The exact wording of the provision has yet to be disclosed, and it remains an open question whether Democrats will ultimately endorse the proposed terms. Traders on Polymarket have adjusted their odds for the Clarity Act’s passage to 43%, an increase from a recent low of 32%. The Senate faces a narrow timeframe to vote on the legislation before its August recess.
Despite the positive price action, technical indicators suggest a cautious outlook regarding XRP’s sustained upward momentum. The Average Directional Index (ADX), which measures trend strength, is currently at 12.3, well below the 25 threshold typically associated with a reported trend. This low reading indicates that neither bulls nor bears have established firm control over the price, suggesting the current bearish trend may be weakening.
Further technical analysis shows that XRP’s 50-day average price remains below its 200-day average, a pattern known as a death cross, which generally signals a downward medium-term trajectory. While the current daily candle exhibits strength, a single day’s movement is unlikely to structurally alter this longer-term trend. A significant shift would require the 50-day exponential moving average (EMA50) to move back above the 200-day EMA.
On a more positive note, the Relative Strength Index (RSI) stands at 58, a level considered bullish territory, indicating that buying pressure is currently outpacing selling pressure without reaching overbought conditions above 70. Additionally, the Squeeze Momentum Indicator fired two bars ago, signaling an expansion in volatility following a period of compression. This suggests that sharp price movements could occur in the upcoming sessions, making the next two to three trading periods crucial for determining the direction.
Analysts outline a bullish scenario for XRP, which could involve a daily close above $1.1343, accompanied by a rising ADX, targeting $1.1563 and potentially $1.1843. Conversely, a bearish outlook suggests a rejection from current levels could pull the price back towards support at $1.1189 and subsequently $1.1035.
The views and opinions expressed herein are for informational purposes only and do not constitute financial, investment, or other advice.
Broader Context
Source materials place the factual news in this context: Reports emerged late Monday that President Donald Trump agreed to the ethics provision that had been holding the Clarity Act hostage in the Senate—a major sticking point in months of negotiations.
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