In just four days, XRP surged by 53%, climbing from $1 to $1.53, marking its most significant short-term surge of the year.
On August 22, XRP touched a peak of $1.66, but faced selling pressure that brought it back down to around $1.50. The next hurdle to clear lies between $1.65 and $1.70, which needs to be breached for a potential rise to $2.
The potential passage of the CLARITY Act and XRP surpassing 1.65-1.70 could propel XRP to $2. Absence of momentum from the cloture vote may necessitate the complete enactment of the bill for XRP to reclaim the $2 mark.
XRP (CRYPTO:XRP) is currently priced above $1.50 after breaking through the long-standing $1.44-$1.45 resistance level that constrained it for much of the year. The cryptocurrency’s recent surge from $1 to $1.53 over the past four days represents a remarkable 53% increase, highlighting XRP’s strongest monthly performance since November 2024.
As XRP trades approximately 24% below $2, the question remains: can this momentum be sustained above $1.50 to ultimately reclaim the $2 mark?
Maryshot / Shutterstock.com
What’s Fueling the Current XRP Surge?
hessyz / Shutterstock.com
XRP is on track to have its best month of the year, rising by 48% in August with nine days remaining. Here are four critical factors that have boosted market confidence and fueled continuous buying for XRP.
Regulatory Changes
Favorable regulatory news has historically impacted XRP’s price, and on August 19, former President Donald Trump met with crypto industry leaders, including Ripple’s CEO Brad Garlinghouse, urging Congress to advance the CLARITY Act.
This meeting fostered renewed optimism that the bill could reach a full Senate vote and become law by 2026. Following this discussion, XRP’s price surged 19% above $1.20, reflecting traders’ positive reaction to the enhanced regulatory outlook.
The recent U.S. Treasury announcement to significantly expand its bond buyback program from a minimum of $2 billion to $4 billion in 10- to 30-year Treasury Bonds has also provided a foundation of support for cryptocurrencies, including XRP.
Effective from September 9, this initiative aims to repurchase longer-dated debt from the market, decreasing the supply of existing bonds and consequently increasing their prices, which pushes their yields downward. This scenario makes riskier investments like crypto more appealing, providing XRP and the broader market with additional support for its current surge.
Ripple Prime’s Bond Financing Initiatives
Ripple Prime’s recent bond financing on August 18 reinforced the long-term outlook for XRP. The non-bank prime brokerage successfully raised $275 million via a private placement of senior unsecured notes, featuring an 8.25 coupon and maturing in 2031.
These funds will support the growth of Ripple Prime’s operations in the U.S. Moreover, its BBB credit rating from KBRA enhances its appeal to major investors, enabling Ripple to strengthen its foothold in the financial markets while simultaneously promoting XRP’s position as the business expands.
XRP Exchange-Traded Funds (ETFs)
XRP spot ETFs have intensified buying momentum in the market, gathering $39.78 million in net inflows over four days, including a daily influx of $18.38 million on August 21.
These four days have contributed to total XRP ETF inflows reaching $1.55 billion. For August alone, inflows sit at $43.05 million, nearly double the $27.29 million recorded for July. Such inflows have provided investors exposure to XRP and created additional buying pressure by removing coins from the open market, sustaining the current rally.
Resistance Levels for XRP to Reach the $2 Target
Sorapop Udomsri / Shutterstock.com
Multiple resistance levels could determine whether XRP approaches $2 in the upcoming weeks. As the token hovers around $1.53, the initial significant test lies between $1.65 and $1.70, where strong resistance is indicated by technical analysis.
On August 22, XRP touched $1.66, but soon retreated towards $1.50, suggesting the presence of sellers at this level. XRP must break past and maintain a position above $1.70, similar to its breakthrough from the $1.44-$1.45 zone, before it can aim for $2.
Should XRP surpass $1.70, the next significant barrier lies around $1.83, which represents a 38.2% retracement from its 52-week high of $3.18. A rally exceeding this price would pave the way to $2, although XRP must clear $2.09 before it can be considered definitively above that threshold rather than merely facing another resistance.
Will the CLARITY Act Propel XRP to $2?
The CLARITY Act has emerged as a key catalyst for XRP in 2026, although it has faced delays in the Senate for the past seven months. President Trump’s appeal for Congress to advance the legislation on August 19 provided a much-needed boost to XRP following a period of subdued price movements. However, the critical test comes on September 15 when the Senate is set to vote on a cloture motion.
Achieving bipartisan support is crucial for the success of the cloture vote, requiring 60 approvals to overcome procedural challenges, with Republicans holding 53 seats. If successful, XRP could trend towards $2, as past behaviors indicate traders respond positively to indications of legislative advancement. However, the cloture vote alone will not secure XRP’s rise above $2 unless it first breaks through the $1.65-$1.70 resistance level and sustains those gains.
If the momentum from the cloture vote fails to drive XRP above $2, the full enactment of the CLARITY Act might be necessary for maintaining the momentum to reach that target.
