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▲ XRP, Cryptocurrency Bill, US Congress/AI Generated Image ©
XRP (Ripple), which successfully rebounded from the setback of regulatory failure, is now on the verge of breaking past $1.40, instantly raising market expectations for further gains.
According to investment media outlet TradingNews on September 18 (local time), XRP rose 6.94% in a single day to reach $1.386, outperforming Bitcoin (BTC)'s 5.42% and Ethereum (ETH)'s 5.61% gains. This largely recouped the 10% plunge that occurred when the US cryptocurrency market structure bill, the CLARITY Act, was defeated in a Senate procedural vote by 49 to 50. This rebound is attributed to the renewed anticipation of regulatory easing after the US Securities and Exchange Commission (SEC) granted an innovation exemption, allowing regulated exchanges to trade tokenized securities for five years.
Despite the upward momentum, structural burdens on the supply side continue to cap further gains. Between 200 million and 400 million XRP are released into the market monthly due to Ripple's escrow lockup releases, a rate two to four times faster than what the seven XRP spot ETFs can absorb. Furthermore, a massive sell wall of approximately 1.16 billion XRP has formed in the $1.45 to $1.46 range, where past buyers' break-even selling orders are concentrated, acting as a significant resistance level.
Institutional fund flows are also sending mixed signals. As of September 17, XRP spot ETFs saw a total outflow of 3.97 million units from funds such as Canary Capital's XRPC and 21Shares' TOXR, halting the continuous inflow trend. In contrast, Bitcoin spot ETFs recorded a net inflow of 2,090 BTC as funds gravitated towards assets with higher regulatory clarity, indicating a short-term capital rotation.
From a technical analysis perspective, whether XRP breaks above $1.40 will be a short-term turning point. If it closes above $1.40 on a daily basis, an additional upward path of approximately 10.9% could open, leading to the $1.45 resistance level and ultimately to the target of $1.5368. Conversely, if it falls below the short-term support level of the 200-day simple moving average near $1.33 and slips below $1.2611, the rebound trend could be invalidated, with a risk of retreating to $1.10.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses incurred based on it. This content should be interpreted for informational purposes only.*
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