XRP gains on Clarity Act optimism; charts urge caution

XRP rose 3.25% to $1.1485 on Monday after reports that President Donald Trump agreed to an ethics provision tied to the Clarity Act. The token reached an intraday high of $1.1511, settled near $1.1485 and held about a $68 billion market capitalization. It ranked third among the top 50 cryptocurrencies by daily performance.

Market indicators moved alongside the news. Predictive-market odds for passage of the Clarity Act increased from about 32% to 43%. Bitcoin traded above $66,000 and five-day spot ETF inflows exceeded $700 million. A rally in Asian artificial intelligence and semiconductor stocks contributed to a broader risk-on session for digital assets.

The Clarity Act would formally classify XRP as a digital commodity. The ethics provision under negotiation would bar the president and family from directly profiting from cryptocurrency ventures. Negotiators including the White House, Sen. Cynthia Lummis and Sen. Bernie Moreno reached an understanding on the clause, although the exact text has not been released and Democratic approval has not been secured. The Senate must act before its August recess.

Trading activity showed short-covering pressure during the spike: roughly $2.93 million in leveraged short positions were liquidated. Technical indicators offered mixed signals. The Average Directional Index (ADX) stood at about 12.3, below the 25 level commonly used to confirm a trend, indicating limited trend strength. The 50-day exponential moving average remained below the 200-day average, a configuration many traders treat as a bearish medium-term signal.

Other measures were more positive. The Relative Strength Index (RSI) was near 58, inside bullish territory but below overbought levels. The Squeeze Momentum Indicator registered two bars ago, indicating expanding volatility after a period of low-range trading. Chart analysts identify a daily close above $1.1343 with a rising ADX as a potential trigger for gains toward $1.1563 and $1.1843. Immediate support levels are near $1.1189 and $1.1035.

The legislative outcome for the Clarity Act remains a key variable for market participants. If the bill passes and designates XRP as a commodity, the token’s regulatory classification would change. Delays, modifications to the ethics language or lack of Democratic support could alter the bill’s timing or content, with the Senate calendar narrowing the window for a vote.