XRP Breaks Key Resistance as Trump Agreement on Clarity Act Ethics Revives Regulatory Hopes

XRP has broken through a critical multi-month resistance level, riding a wave of optimism after reports emerged that a key legislative bottleneck holding up the Clarity Act in the U.S. Senate has been resolved. The token, which has long struggled under regulatory uncertainty, rallied alongside the broader cryptocurrency market as political developments in Washington signaled a potential path forward for clear digital asset rules.

The Ripple-linked cryptocurrency jumped 3.5% to reach an intraday high of $1.1511, eventually settling around $1.1485. This upward move shattered the $1.13 resistance level that had capped XRP’s recovery efforts since late June. The sudden price surge triggered approximately $2.93 million in leveraged short liquidations and pushed XRP’s market capitalization to roughly $68 billion, making it the third-best performer among the top 50 digital assets, trailing only Ondo and Cardano.

The rally was sparked by reports that President Donald Trump has agreed to an ethics provision in the Clarity Act, a crucial piece of legislation that would formally classify XRP as a digital commodity. This classification is highly anticipated by market participants because it would strip away the regulatory ambiguity that has dampened institutional demand for the token.

For months, Senate Democrats have insisted on including language in the bill to prevent the president and his family from directly profiting from cryptocurrency ventures. The issue became a focal point of negotiations due to the Trump family’s involvement in various digital asset businesses, which reportedly generated more than $1.2 billion for the president in 2025 alone. On Sunday, a compromise on the ethics language was reportedly reached between the White House, Sen. Cynthia Lummis, and Sen. Bernie Moreno. While the exact wording of the provision has not been made public, the breakthrough has significantly revived hopes for the bill’s passage.

Following the news, traders on the decentralized prediction platform Polymarket pushed the odds of the Clarity Act passing to 43%, up from a recent low of 32%. The legislative window remains tight, however, as the Senate must hold a vote before adjourning for its August recess.

The political breakthrough lifted the wider digital asset market. Bitcoin climbed back above $66,000, supported by five-day spot ETF inflows exceeding $700 million. A broader risk-on sentiment in global markets, highlighted by a rebound in Asian semiconductor and artificial intelligence stocks, further supported the crypto-wide rally.

Despite the positive momentum, technical indicators present a mixed picture for XRP traders.

The Average Directional Index (ADX) currently sits at 12.3, well below the threshold of 25 that typically confirms a strong trend. This low reading suggests that neither buyers nor sellers have established firm control, though it indicates the previous bearish trend is rapidly losing strength. While the positive and negative directional indicators (DI+ and DI-) lean slightly in favor of the bulls, the daily charts still show a “death cross,” with the 50-day exponential moving average (EMA) trading below the 200-day EMA. This suggests the medium-term trajectory remains technically bearish until the shorter-term average crosses back above the longer-term line.

More immediate momentum indicators offer a more optimistic outlook. The Relative Strength Index (RSI) has reached 58, indicating healthy buying pressure without entering overbought territory. Additionally, the Squeeze Momentum Indicator recently signaled expanding volatility after a period of tight consolidation, suggesting a sharp price move could be on the horizon.

If XRP can secure a daily close above $1.1343 alongside a rising ADX, the bullish path could target the 78.6% Fibonacci retracement level at $1.1563, with a potential extension toward $1.1843. Conversely, if the current rally stalls, the price could pull back to test immediate support at $1.1189, with a deeper safety net sitting around $1.1035.