XRP kicked off July with a powerful rally, gaining over 13% in the first three days alone. The token climbed from a low near $1.03 to trade around $1.18, reigniting interest among traders and investors.
The broader crypto market provided a supportive backdrop. Total market capitalization rose 0.86% to $2.18 trillion, with Bitcoin breaking above $62,000 and Ethereum clearing $1,700. Softer-than-expected US jobs data for June—just 57,000 new hires versus a 110,000 forecast—fueled hopes for looser monetary policy, giving a lift to risk assets.
A major catalyst for XRP came from Washington. Progress on the CLARITY Act in the US Senate boosted sentiment around the token’s regulatory outlook. The bill could reshape how digital assets are classified under US law, and XRP being referenced in the SEC/CFTC Digital Commodities category prompted capital rotation into the token. Attention also fell on Ripple co-founder Chris Larsen’s investment in American Perpetuals Exchange Corporation, a firm linked to Senator Kirsten Gillibrand’s son, adding a layer of political intrigue.
Institutional flows added fuel. XRP-focused funds recorded $6.55 million in daily inflows on July 2, pushing cumulative inflows to $1.49 billion and net assets to $987.91 million. The same day, spot Bitcoin ETFs reversed a 10-day outflow streak with $221.72 million in net inflows, while Ether ETFs pulled in $29.08 million.
Technical analysis painted an even broader picture. Analyst ChartNerd (@ChartNerdTA) highlighted an 8.5-year cup-and-handle pattern forming on XRP’s monthly chart, warning that ignoring XRP near $1 “could prove costly.” Should Fibonacci support hold within the handle structure, he sees Fibonacci extensions pointing to price targets of $8, $13, and $27.
Historical data adds to the bullish narrative. Since 2013, July has generated an average 10.4% return for XRP, with positive performance in seven of the last seven years. In 2020, XRP gained over 48% in July. On the four-hour timeframe, XRP was trading at $1.1714, with the RSI at 79.91—overbought but still accompanied by strong buying pressure (Chaikin Money Flow at 0.21). Immediate resistance sits at $1.20; a breakout could target $1.25. Support rests at $1.15, with a deeper floor at $1.10.
