XRP surges 20% as SEC rules and short liquidations fuel rally
The token broke through key resistance levels on the back of proposed regulatory clarity and a wave of futures liquidations.
XRP has climbed by more than 20 per cent in the past 24 hours, emerging as the top performer among major digital assets as investors seek to push the token out of its bear market phase. The rally saw the asset break past the $1.15 resistance level, a move that technical analysts suggest marks a significant shift in price action.
Trading volumes for XRP surged by 430 per cent during this period, reaching $5.3 billion. This figure represents over 6 per cent of the asset’s circulating market capitalisation and marks the highest single-day volumes recorded in months. The spike in activity coincided with the liquidation of more than $3 billion in short positions within the futures market, with daily short liquidations hitting their highest levels in 90 days.
The primary catalyst for the move appears to be new regulatory rules proposed by the U.S. Securities and Exchange Commission (SEC), which are viewed as a tailwind for the sector. This regulatory momentum was further bolstered by a meeting between President Donald Trump and executives from Coinbase and Ripple, who expressed support for legislation to establish a clear framework for the crypto industry.
During the meeting, President Trump stated that the administration is focused on creating a clear regulatory framework for pioneers and builders to do business with confidence on American soil. He added that the U.S. aims to remain the undisputed leader in bitcoin, crypto, and related technologies such as artificial intelligence and prediction markets.
Analysts from FX Empire’s “The Odyssey” noted that the token has broken out of its descending price channel, with the next key technical level identified as the 200-day exponential moving average (EMA). While the Relative Strength Index has entered overbought territory, suggesting a potential pullback, the strength of recent liquidations may keep bearish pressure at bay for the time being.
If the current uptrend continues, analysts predict XRP could rise to $1.80, representing a 45 per cent gain. This potential upside is seen as part of a broader recovery, particularly if the pending Clarity Act is approved by Congress once legislators return from their summer recess.
