XRP jumps 20% to $1.23 as SEC clarity opens 45% upside

XRP rose 20% to $1.23 in 24 hours, breaking $1.15 resistance as SEC rules and $3 billion in short liquidations fueled the rally.

Coinglass data shows daily short liquidations spiked to their highest level in 90 days, with over $3 billion in short positions wiped out across the futures market as XRP broke past the $1 psychological threshold.

Trading volume jumped 430% to $5.3 billion, accounting for more than 6 percent of XRP's circulating market cap, the highest single-day turnover in months. The token exited its descending price channel, and the breakout was confirmed by a move above $1.15 resistance.

XRP now faces a retest of the 200-day exponential moving average, with the Relative Strength Index entering overbought territory. If the uptrend holds, the token could reach $1.80, a 45 percent gain from current levels.

SEC Framework and Clarity Act Set the Stage

The new rules proposed by the U.S. Securities and Exchange Commission kicked off the rally, and regulators have now formally classified XRP as a commodity rather than a security, according to the SEC and Commodity Futures Trading Commission. The designation clears a five-year regulatory cloud that had capped XRP's upside since the SEC sued Ripple in 2020.

President Donald Trump, in a meeting with executives from Coinbase and Ripple, pledged to push the Clarity Act through Congress once legislators return from summer recess. "We're focused on creating a clear, regulatory framework for pioneers and builders," Trump said, according to the meeting.

Ripple's Payments Ambition and the $1.80 Target

The commodity classification has already unlocked new investment products. The first spot XRP ETF, the REX-Osprey XRP ETF, launched in September, followed by six more spot ETFs that drew over $1 billion in combined inflows by year-end. Ripple has processed $3 billion in blockchain transactions since 2023 as it builds an end-to-end global payments network with XRP at its core.

XRP's breakout above $1.15 set up a trading opportunity with a 2.6x risk-reward ratio targeting $1.32, a level the token is already approaching. A pullback after the 200-day EMA retest is possible given the overbought RSI, but today's liquidation data suggests bears may stay sidelined. If XRP holds above the EMA, the token could reach $1.80, a 45 percent gain, with the 52-week high of $3.65 as a longer-term reference.

This article is for informational purposes only and does not constitute investment advice.