XRP rallies 50 percent amid regulatory hopes and Treasury shifts

XRP has experienced a significant price rally, increasing approximately 50 percent within a week to trade between $1.48 and $1.51 by late August 2026. This surge was driven by several factors, including political anticipation surrounding the CLARITY Act, which the U.S. Senate is expected to vote on in mid-September. The act could potentially classify XRP as a commodity, providing regulatory clarity.

Additional drivers include massive short liquidations and market shifts following the U.S. Treasury's announcement to increase long-term bond buybacks from two billion to at least four billion dollars per operation. This move influenced risk appetite in the digital asset market.

Despite the momentum, technical indicators suggest the asset may be overbought, with the RSI exceeding 85. Furthermore, institutional demand via ETFs has seen a decline, with monthly inflows dropping significantly compared to late 2025. On the fundamental side, Jeonbuk Bank has begun utilizing Ripple Payments for cross-border transactions, and whale activity remains high.