- XRP price gives a decisive breakout from the resistance trendline of a three-months long triangle pattern.
- On-chain data highlights the addresses holding +10 million XRP tokens have accumulated roughly 45.83 billion tokens, representing a whopping 68.5% of the total circulating supply.
- The Senate Banking Committee approved the Clarity Act with a 15-9 bipartisan vote, moving the bill closer to full Senate consideration.
XRP, the native cryptocurrency of the XRP ledger, recorded a 8.5% increase during Thursday’s U.S. market hours to trade at $1.52. The primary catalyst to this rally is advancement of the long-awaited digital asset market structure bill known as the Clarity Act. The buying pressure in XRP price outperformed other major cryptocurrency as on-chain data highlighted a steady accumulation since 2022. Is the rally to $2 next?
Senator Banking Committee Advances Clarity Act
On May 14th, the cryptocurrency market experienced a significant inflow, which pushed its market cap 2.63% up to reach a market cap of $2.72. The single biggest immediate catalyst is that the Senate Banks Committee passed a significant regulatory bill on Thursday causing a strong rally in crypto markets. Bitcoin gained almost 3% to reach $82,000. Ethereum traded up around 2%, while XRP rallied by 8.5%.
The Senate Banking Committee voted unanimously, 15-9 across party lines, to approve the Clarity Act. The bill now heads to the full Senate for debate and possible approval. The proposed bill would shift the SEC’s responsibilities over to the Commodity Futures Trading Commission for the trading of most cryptocurrencies.
This is an important step in ongoing congressional action to establish specific regulations for digital assets. The measure is to repeal the regulations and classification of various tokens. If passed, the bill would officially classify certain assets, such as XRP, as commodities, and give a clearer legal treatment.
The committee vote had a quick impact on market participants. Trading activity picked up as investors tracked progress on the legislation, which has been under discussion for some time. The developments come as part of continued efforts in Washington to establish a more precise environment for crypto activities.
XRP Whale Wallets Signal Growing Bullish Conviction
Major XRP investors have been buying the token in silence for the past almost seven years. According to data from Santiment, addresses holding at least 10 million XRP tokens have now accumulated 45.83 billion XRP tokens, a milestone they reached for the last time in May 2018
Today, the amount of concentrated supply represents about 68.5% of the total circulating token supply, which reflects a significant shift of tokens towards large market players. Price has been following this trend and has stuck the range between $1.48 and $1.50, with big wallets still building their position.
The whale-tier accumulation comes at a time when crypto markets, in general, are seeing a series of institutional and retail surges in interest, and XRP’s on-chain metrics have garnered a lot of attention from investors tracking supply concentration indicators.
XRP Price Breaks out Multi-Month Accumulation
Over the past three months, the XRP price witnessed a sideways trend, fluctuating around the $1.42 level. This consolidation resonated strictly within two converging trendlines, indicating the formation of a symmetrical triangle pattern.
The chart setup is commonly spotted within an established trend, as thee temporary consolidation it provides could allow traders to recoup the prevailing momentum.
With today’s price, the XRP price gave an upside breakout from the pattern’s resistance trendline and another downsloping trendline acting as major multi-months resistance.
If the breakout holds, the XRP price could rise another 20% to hit $1.8, followed by a surge to $2.
On the contrary, if the XRP price reverts within the range of the triangle pattern, the bullish thesis will get invalidated and price may drive a prolonged consolidation.
