Crypto markets moved higher late Monday after reports said President Donald Trump had agreed to the ethics provision that had been holding up the Clarity Act in the Senate. Bitcoin climbed above $66,000 after the news, five-day spot ETF inflows topped $700 million, and a rebound in Asian AI and semiconductor stocks added to the broader risk-on tone across digital assets.
XRP reacted more sharply than most large tokens. Decrypt had reported five days earlier that the Ripple-linked asset was lagging the wider market recovery and remained capped below the $1.13 resistance level that had blocked each rally since late June. That ceiling gave way on Tuesday's move.
XRP reached an intraday high of $1.1511 while holding near a $68 billion market capitalization. The move triggered about $2.93 million in leveraged short liquidations. It later settled at $1.1485, up 3.5% on the day, putting it third among gainers in the top 50, behind only Ondo and Cardano.
The Clarity Act matters in a very specific way for XRP. The bill would formally classify XRP as a digital commodity, removing the regulatory ambiguity that has weighed on institutional demand for years. According to the report, the signal that Trump had agreed to the ethics language cleared a path for easier negotiations.
Senate Democrats had spent months pressing for language that would bar the president and his family from directly benefiting from crypto ventures. Since returning to office in January 2024, the Trump family has taken part in several crypto-related businesses, and the report said those activities generated more than $1.2 billion for the president in 2025 alone.
The White House, Senator Cynthia Lummis, and Senator Bernie Moreno reportedly reached an agreement on that language on Sunday. The exact wording has not been disclosed, and it remains unclear whether Democrats will accept the proposed version.
On Polymarket, traders pushed the odds of Clarity Act passage to 43%, up from a recent low of 32%. The Senate must vote before leaving for its August recess, leaving a narrow window for the legislation.
What the XRP chart is showing now
The daily candle looks strong. The underlying indicators are less conclusive.
The Average Directional Index, or ADX, stands at 12.3, far below the 25 level commonly used to confirm a trend. ADX measures trend strength without regard to direction, so a reading this low suggests neither bulls nor bears have firm control. In this case, it points to a bearish trend that is fading quickly rather than a fully established uptrend.
There is some momentum behind the breakout. The directional indicators, DI+ and DI-, lean modestly in favor of bulls, offering a small positive tilt. On their own, though, they do not settle the trend question.
The moving-average structure is still fragile. The average price over the last 50 days remains below the 200-day average, a setup traders describe as a death cross. Because exponential moving averages smooth price over set periods, a shorter-term average trading below a longer-term one signals that the medium-term trajectory is still pointing lower.
One strong daily candle does not undo a death cross. For the technical picture to change in a more durable way, bulls would need to push the 50-day EMA back above the 200-day EMA.
RSI offers a somewhat brighter read. At 58, the Relative Strength Index is in bullish territory, showing buying pressure is currently outpacing selling pressure without entering overbought territory above 70. The Squeeze Momentum Indicator is another one to watch. It fired two bars ago, a sign that volatility is starting to expand after a compressed period. Moves that follow a squeeze can break sharply in either direction, which puts added focus on the next two or three sessions.
Levels in focus for bulls and bears
In the bullish scenario outlined in the report, a daily close above $1.1343 with ADX starting to rise would target $1.1563, the 78.6% Fibonacci level, and then $1.1843 for a full swing recovery.
In the bearish scenario, rejection from current stretched conditions could send XRP back into the golden zone or below it. The first line of defense is $1.1189, followed by $1.1035 as the next notable support level.
The original article also noted that the views expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.