XRP Soars on Clarity Act Buzz, But Caution Looms in the Charts

It was a favorable day for cryptocurrency investors.

Late Monday reports revealed that President Donald Trump had agreed to the ethics provision impeding the Clarity Act in the Senate—a crucial topic in months-long discussions. Following this development, Bitcoin rose above $66,000, with spot ETF inflows exceeding $700 million over five days, and a rebound in Asian AI and semiconductor shares contributing to a risk-on atmosphere that boosted nearly all digital currencies.

Among these, $XRP experienced significant gains. As reported by Decrypt five days earlier, the token linked to Ripple had been trailing in the broader market recovery—struggling below the $1.13 resistance that had hindered rallies since late June. However, today that barrier was broken.

The price of $XRP surged to an intraday peak of $1.1511, maintaining approximately a $68 billion market cap. This movement triggered nearly $2.93 million in liquidations of leveraged shorts, culminating in a closing price of $1.1485—an intra-day increase of 3.5% that positioned $XRP as the third highest gainer among the top 50, following Ondo and Cardano.

The Clarity Act has specific significance for $XRP, as the proposed legislation would definitively classify it as a digital commodity, eliminating the regulatory uncertainty that has deterred institutional interest for years. The positive indication of President Trump’s agreement on the ethics clause could ease progression of discussions.

For months, Senate Democrats have advocated for a provision in the Clarity Act that would prevent the president and his family from directly profiting from cryptocurrency ventures. Following the Trump family’s resurgence in January 2024, they have engaged in various crypto businesses, generating over $1.2 billion for the president in 2025 alone.

It is reported that the White House, along with Senators Cynthia Lummis and Bernie Moreno, reached an agreement on this language Sunday. However, the exact wording of the provision remains undisclosed, and the acceptance of the proposed text by Democrats remains uncertain.

Traders on Polymarket have increased the odds of the Clarity Act’s passage to 43%, a significant rise from a recent low of 32%. The Senate is required to vote before the August recess, creating a narrow timeframe for action.

$XRP price analysis: Chart insights

The daily candle signals strength, but technical indicators suggest a need for caution.

The Average Directional Index (ADX) currently stands at 12.3—substantially lower than the 25 threshold that signifies a confirmed trend. ADX assesses the strength of trends irrespective of direction, indicating that neither bulls nor bears dominate the market at this time. This suggests that the ongoing bearish trend is weakening.

Today’s breakout appears to have momentum. The directional indicators (DI+ and DI-) show a slight bullish tilt, providing a minor advantage to the bulls, but this alone is insufficient.

The last 50 days’ average price remains below the 200-day average, traditionally known as a death cross. Exponential moving averages smooth out price averages over specified time periods; when a shorter-term average lies beneath a longer-term one, it indicates a continuing downward trajectory.

One daily candle does not negate a death cross. Bulls must elevate the EMA50 above the EMA200 to alter that structural reading.

The Relative Strength Index (RSI) stands at 58, which is a positive indicator—indicative of bullish conditions, confirming that buying pressure currently exceeds selling without reaching overbought levels above 70. Additionally, the Squeeze Momentum Indicator is worth monitoring: it activated two bars ago, indicating that volatility is likely increasing after a tight compression period. These squeezes can lead to sharp moves in either direction, so the next two or three sessions could be critical.

The bullish outlook: A daily close above $1.1343, along with an increasing ADX, targets $1.1563 (the 78.6% Fibonacci level) and potentially the full swing recovery at $1.1843. The bearish outlook: A rejection at the current elevated levels could pull the price back into the golden zone, with $1.1189 as the initial support and $1.1035 as the next significant level below it.