The cryptocurrency market is once again experiencing a significant trend, and this time the focus is not on Bitcoin, but on the long-silent XRP. In just 24 hours, XRP surged to $3.60, an increase of 19%, drawing market attention. Behind this rapid rise is not only the comprehensive bullish technical indicators but also the rare 'warmth' from U.S. legislators towards the crypto market. Of course, the decline in Bitcoin's market share has also provided a good stage for altcoin rotation.
Favorable regulatory news arrives: the U.S. House of Representatives passes a key bill, directly benefiting XRP.
The main catalyst for this round of price increase comes from Washington. On July 17, 2025, the U.S. House of Representatives officially passed three cryptocurrency bills, the most notable being the (GENIUS Act). This bill not only establishes a clear regulatory framework for stablecoins but also explicitly prohibits the Federal Reserve from issuing a Central Bank Digital Currency (CBDC).
This is very positive for Ripple and XRP. Ripple CEO Brad Garlinghouse immediately stated: 'This bill will unleash institutional funds into the XRP ecosystem.' Additionally, the long-standing lawsuit between Ripple and the U.S. Securities and Exchange Commission (SEC) has also seen a turning point, with analysts generally predicting that a settlement is near, further injecting confidence into the XRP market.
The technical indicators are fully bullish: key indicators are pointing upward, with $4.55 as the next target.
From a technical analysis perspective, the current trend of XRP is not without purpose but is supported by multiple indicators strengthening simultaneously.
The Relative Strength Index (RSI 14) has soared to 88.68, in the 'overheated' zone, but no signs of weakening have been seen yet.
The Moving Average Convergence Divergence (MACD) histogram continues to rise, currently at +0.10, showing a clear bullish bias.
Successfully broke through the Fibonacci 127.2% extension resistance level ($3.98), with the next target looking at $4.55.
These data show that despite short-term correction pressure, overall bullish momentum remains quite strong.
The derivatives market is booming: open interest has soared to $10 billion, and funding rates have turned positive.
In the futures and derivatives market, XRP's activity has also significantly increased. According to community data from CoinMarketCap, XRP's open interest surged 18% within 24 hours, reaching an astonishing $10 billion, setting a new recent high.
Notably, the funding rate has turned positive, indicating that bullish traders are willing to pay a premium to hold positions, showing clear market expectations for future price increases.
Altcoin rotation is underway: Bitcoin's market share has dropped to 61%, with capital outflow boosting XRP.
This surge in XRP is also related to the direction of capital flow. Bitcoin's market share has fallen from 63% to 61%, indicating that market funds are shifting from mainstream assets to altcoins, in what is known as 'altcoin rotation.'
Historical experience shows that whenever Bitcoin's popularity wanes, altcoins have an opportunity for short-term explosions, and XRP happens to be riding the wave this time.
Short-term overheating but bulls have not retreated; can XRP hold the $4 level?
Overall, the recent surge of XRP is the result of a combination of 'timing, location, and harmony' — favorable regulatory policies, key technical breakthroughs, an active derivatives market, and the retreat of Bitcoin have all contributed to this rapid advance.
However, it cannot be overlooked that the RSI is currently in the high range, and there may be risks of short-term volatility and consolidation. Next, if Bitcoin's market share rises again and funds concentrate back on mainstream coins, whether XRP can hold $4 or even challenge $4.55 still requires observation of market momentum.
This article reveals that XRP surged 19% overnight, with three main driving forces exposed: favorable regulation, a hot futures market, and Bitcoin's retreat, first appearing in Chain News ABMedia.
