TLDR
- XRP’s 7-day implied volatility surged to 96%, signaling a potential 13% price swing.
- XRP trading volume jumped 73% in 24 hours, now exceeding 6% of its circulating supply.
- Congress is reviewing three crypto-focused bills that could reshape U.S. digital asset regulation.
- XRP futures hit $35 billion on July 11, nearing levels seen during Ripple’s December 2024 SEC victory.
XRP’s price volatility has sharply increased as U.S. lawmakers begin a critical week focused on cryptocurrency regulation. The token’s seven-day implied volatility has jumped to 96%, indicating the potential for a 13% price move in either direction. XRP is currently trading around $3, reflecting a 5% rise in the last 24 hours.
The surge in volatility coincides with a busy legislative schedule in Washington. Congress is now reviewing several bills that could influence the future of the digital assets market. The outcome of these reviews may drive further price action in XRP and other major tokens.
XRP Trading Volumes Rise Amid ETF Optimism
XRP trading volumes have risen by over 70% in the past 24 hours. This increase has coincided with the heightened volatility and news surrounding the ETF approval which has risen to 85% according to Polymarket, and Congressional activity. Data from CoinGlass shows that over 6% of XRP’s circulating supply has been traded in a single day.
Futures market activity also picked up, with $35 billion in XRP pairs exchanged on July 11. Though below the record levels seen during Ripple’s legal battle with the SEC in December 2024, this uptick suggests renewed interest. XRP futures volume had previously peaked at $85 billion during the December rally.
The increase in trading activity and volatility comes as Bitcoin and Ethereum also post gains. Bitcoin has broken past $120,000 for the first time, while Ethereum now trades above $3,000. This broader market rally has also led to $600 million in short positions being liquidated in the last 24 hours.
XRP Price Bullish Technical Patterns Support Price Momentum
XRP’s recent breakout from a bull flag pattern has caught traders’ attention. The daily chart shows the token has surpassed key moving averages, including a golden cross between the 9-day and 21-day EMAs. This crossover is often viewed as a signal of continued price strength.
The Relative Strength Index (RSI) has also entered overbought territory, which confirms recent upward momentum. XRP is now testing the $3 level, which was last seen in early February. The former resistance at $2.70 may act as support if the price retraces.
If current momentum continues, XRP could target higher resistance zones such as $4. In a more extended rally, price forecasts suggest possible levels up to $9, though that would depend on further bullish developments and legislative clarity from Congress.
Regulatory Focus Increases Market Uncertainty
This week, the U.S. House of Representatives is reviewing three bills that could reshape the crypto market structure. These include the GENIUS Act, the CLARITY Act, and the Anti-CBDC Surveillance Act. Each aims to define legal frameworks for stablecoins, crypto oversight, and central bank digital currencies.
The GENIUS Act could require stablecoin issuers to hold liquid reserves, conduct yearly audits, and issue monthly reports. The CLARITY Act may determine whether the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC) will oversee specific digital assets. The Anti-CBDC Surveillance Act proposes a ban on the Federal Reserve issuing a retail central bank digital currency.
XRP’s price has reacted strongly ahead of these developments. Market participants are preparing for larger moves, which is reflected in the surge in implied volatility. According to Volmex Finance, XRP’s seven-day IV is now more than double its historical volatility, which stood at 42% last week.
Lawmakers’ Decisions May Guide Market Direction
According to Javier Rodriguez-Alarcón, CIO at XBTO, institutional involvement in crypto depends on clear legal rules. “The GENIUS Act and CLARITY Act are especially important for setting institutional ground rules,” he said in a written statement.
Rodriguez-Alarcón added that defined frameworks could enable regulated tokenization and support capital deployment in the U.S. He compared the process to ongoing developments in the UAE, where similar measures are supporting tokenized markets.
As Congress discusses these bills, traders are watching closely. The outcome could determine whether current bullish trends continue or reverse, depending on the legal outcomes. XRP’s current volatility reflects this waiting period, with large swings likely as the legislative session unfolds.
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