Post-ETF Rally Keeps XRP Elevated, Though $3.56 Remains a Key Hurdle

XRP recovered from a sharp intraday drop on Sunday, closing the day near $3.47 as institutional demand intensified following the debut of the ProShares Ultra XRP ETF and the passage of landmark U.S. crypto legislation.

The asset had briefly fallen over 4% to test support at $3.40 after peaking above $3.60 earlier in the week, but buying pressure returned swiftly. A spike in volume—over 2.5 times the daily average—suggested large players were accumulating at the lows. XRP ended the session in recovery mode, gaining more than 2% from its daily bottom.

Highlights:

Volatility Zone: XRP declined from $3.56 to a low of $3.40 before rebounding to $3.47 by session close.
Volume Surge: Trading volume hit 140.78 million at the day’s low, signaling aggressive institutional positioning.
Catalysts: The ProShares Ultra XRP ETF launched on NYSE, while U.S. lawmakers approved the GENIUS Act, CLARITY Act, and FIT21 framework, resolving major regulatory uncertainties around XRP.

Context:

ProShares’ leveraged futures-based XRP ETF, the first of its kind in the U.S., opened new avenues for institutional exposure via traditional finance channels. Meanwhile, recent legislation delivered long-awaited regulatory clarity, particularly around the classification of digital assets like XRP—removing barriers to inclusion in future spot ETFs and unlocking sidelined demand.

Market Recap:

Range: XRP traded between $3.403 and $3.557 from July 20 to July 21 (24h).
High: Reached $3.557 at 19:00 before retracing.
Low: Touched $3.416 at 22:00 amid peak volume.
Close: Recovered to $3.474, posting a 1.58% bounce from the low.
Final Hour: Gained 2.31% from $3.45 to $3.47 with over 5 million tokens traded in the final stretch.

Technical Picture:

Resistance: The $3.55–$3.56 range remains a ceiling, with repeated failures to close above it.
Support: $3.40–$3.42 is forming strong structural backing, reinforced by large-volume defenses.
Momentum: RSI remains neutral; MACD shows mild bearishness, hinting at short-term sideways action before the next breakout attempt.

What Traders Are Watching:

Breakout or Breakdown: A confirmed move above $3.56 could open upside toward $3.84 and $4.20. Conversely, losing $3.40 support could trigger a slide toward $3.17–$3.20.
Spot ETF Watch: With the futures ETF now live and legal clarity in place, spot XRP ETF filings are widely expected to follow.
Capital Flows: Continued institutional accumulation and legal momentum may extend XRP’s leadership in the altcoin space.

With fresh regulatory tailwinds and ETF enthusiasm providing structural support, XRP appears poised for further volatility—but the tone has shifted decisively in favor of bulls as institutions deepen their exposure.