Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Tomorrow's U.S. Senate vote on the CLARITY Act, which is meant to finally draw the line between SEC and CFTC authority, threatens to turn into a catastrophe for XRP bears.
While Capitol Hill weighs the prospects of a bill capable of rewriting the rules for the entire industry, a classic powder keg has formed on crypto exchanges: XRP shorts are one step away from the forced liquidation of $9.46 million in positions, according to CoinGlass data.
The market trigger is dangerously close. The point of maximum pain for short sellers sits at $1.4644.
With XRP currently trading around $1.3936–$1.4001, buyers need to push the price up just 5.08%, a modest 7 cents, to trigger a cascade of stop orders. Technically, the asset is already squeezed inside a narrowing triangle and is testing its upper boundary.
Binance has become the epicenter of the confrontation. Over the past 24 hours, futures trading volume on the exchange has doubled, open interest has jumped to $425.98 million, and short liquidations have already exceeded $1.67 million.
Bybit and Hyperliquid are showing an aggressive tilt toward longs, while sellers are trying, with little success, to hold their local line of defense on Tier-2 exchange BingX.
What is at stake in Washington (besides officials' money)
The political backdrop surrounding the CLARITY Act is pushing the suspense to its limit. According to Reuters, the White House has made unprecedented concessions to secure votes from undecided senators: the administration has agreed to an amendment requiring officials to place their personal crypto holdings in blind trusts.
Wall Street, however, remains cautious about the bill's chances amid strong opposition from the banking lobby.
For XRP, the outcome of the vote will serve as a binary trigger:
- Success in Washington will immediately trigger a short squeeze above $1.4644, with a technical target of $1.60, fueled by liquidated bearish positions.
- Failure will send the token back toward support in the $1.31–$1.35 range.
Adding fuel to the fire, the U.S. Federal Reserve's interest rate meeting will follow immediately after the Senate news, guaranteeing extreme market volatility in both directions.
Arman Shirinyan
Dan Burgin
