XRP rebounds from $1 as SEC crypto proposal draws scrutiny

XRP rebounded from the $1 support level on Wednesday, trading at $1.021, after the U.S. Securities and Exchange Commission unveiled a crypto proposal affecting the token.

XRP traded at $1.021 on Wednesday, rebounding from the $1 support level, after the U.S. Securities and Exchange Commission unveiled a crypto proposal affecting the token. Traders held back pending concrete regulatory guidance, keeping the move modest after the token posted its lowest weekly close in two years.

The proposal, announced Aug. 12, follows the Senate's recess without a vote on the CLARITY Act, which had been a principal narrative support for XRP this year, according to CryptoTicker data. The first procedural vote is set for Sept. 15 and requires 60 votes to advance.

XRP's rebound comes after the token printed a low of $0.99057 on Aug. 11, breaking below the $1 floor it had defended for months. CoinGlass data shows $8.45 million in XRP positions liquidated over 24 hours, with longs accounting for 97.6 percent. On-chain activity on the XRP Ledger fell 44 percent, from 2.81 million transactions on Aug. 5 to 1.57 million on Aug. 9.

The SEC proposal could trigger a rally if the rules prove favorable or a selloff if they impose restrictive measures on XRP trading and usage. XRP faces immediate resistance at the 50-day EMA of $1.094, with the 100-day EMA at $1.176 and the 200-day EMA at $1.377 overhead, according to FXStreet technical analysis.

What the SEC proposal covers

The SEC's action targets XRP's regulatory treatment under U.S. securities law, though the exact scope of the rule and which entities it covers has not yet been disclosed. The proposal adds to a crowded regulatory calendar for the token, which also faces the CLARITY Act vote in September. Prediction markets have been assigning a 65 percent to 68 percent probability of XRP trading at or below $1 during August, according to Polymarket.

Support and resistance levels

On the downside, immediate support sits at the horizontal level around $1.000, where buyers could slow the decline if selling pressure persists. A daily close below that area would open the path toward $0.94 and, on a weekly basis, toward $0.75, roughly 25 percent lower. On the topside, XRP must clear the 50-day EMA at $1.094 before the 100-day EMA at $1.176 and the prior horizontal barrier at $1.300 come into play.

For traders, the SEC proposal and the Sept. 15 CLARITY vote are the two events most likely to set XRP's direction in the coming weeks. A favorable regulatory outcome would remove a key overhang that has kept the token below its major moving averages, while restrictive rules could push XRP toward the $0.75 zone. Bitcoin's steadiness near $63,700 and Ethereum's hold above its 50-day EMA at $1,864 provide the broader market context, with XRP's fate tied to both regulatory clarity and the direction of the largest cryptocurrencies.

This article is for informational purposes only and does not constitute investment advice.