XRP rises as Clarity Act odds improve, but charts show weak trend

XRP rallied Tuesday after reports of movement on the Clarity Act, a crypto market bill that could be especially relevant for the Ripple-linked token. For everyday investors, the move shows how regulation headlines can hit token prices fast, even before a law is passed.

XRP traded at $1.1485, up about 3.5% on the day, after reaching an intraday high of $1.1511, according to Decrypt. The token’s market value was around $68 billion, and the move triggered roughly $2.93 million in leveraged short liquidations, which happen when traders betting on a price decline are forced to close positions because the market moves against them.

Among the top 50 crypto assets, Decrypt said XRP ranked third for the day’s gains, trailing Ondo and Cardano. The move also pushed XRP through the $1.13 area, a level Decrypt said had blocked its rallies since late June.

Why the Clarity Act matters for XRP

The rally followed reports that President Donald Trump agreed to an ethics provision that had slowed the Clarity Act in the Senate. The bill would classify XRP as a digital commodity, according to Decrypt, a category that could reduce the regulatory uncertainty that has shadowed institutional demand for the token.

That classification is the key mechanism. If a token is treated as a commodity rather than left in a gray area, large investors and platforms may have a clearer rulebook for custody, trading and compliance. The report does not mean the bill has passed, and Decrypt said the final wording of the ethics provision has not been made public.

Senate Democrats had pushed for language that would bar the president and his family from directly profiting from cryptocurrency ventures, according to Decrypt. The Trump family has been involved in multiple crypto-related businesses since Trump returned to office in January 2024, and Decrypt previously reported that the president earned more than $1.2 billion from crypto in 2025.

The White House, Sen. Cynthia Lummis and Sen. Bernie Moreno reportedly reached an agreement on the disputed language Sunday, according to Decrypt. Whether Democrats will accept the wording remains unresolved.

Polymarket traders raised the implied odds of the Clarity Act becoming law to 43%, up from a recent low of 32%, according to Decrypt. Polymarket is a prediction market, where users buy and sell contracts tied to future outcomes, so its odds reflect trader positioning rather than an official probability.

Broader crypto market catches a bid

The move in XRP came during a wider crypto bounce. CoinDesk reported that Bitcoin rose above $66,000 after the Clarity Act news, while five-day spot ETF inflows topped $700 million. A rebound in Asian artificial intelligence and semiconductor stocks also helped the broader risk mood, according to Decrypt.

Spot exchange-traded funds, or ETFs, hold the underlying asset and trade on traditional exchanges. When inflows rise, more money is entering those products, which can be read as a sign of stronger investor demand.

Charts still call for caution

XRP’s price action improved, but Decrypt said the technical picture remained mixed. The Average Directional Index, or ADX, stood at 12.3, below the 25 level commonly used to mark a confirmed trend.

ADX measures how strong a trend is, without saying whether that trend is up or down. A low reading suggests neither buyers nor sellers have clear control. In XRP’s case, Decrypt said the bearish trend appeared to be weakening, but the indicator had not yet confirmed a stronger upward trend.

The Senate still needs to vote before its August recess, according to Decrypt. Until lawmakers release the ethics language and show whether there is enough support, XRP’s rally remains tied to a political process that is still in motion.

This story draws on original reporting from Decrypt.