The U.S. Congress is moving closer to passing the Clarity Act, a bill that would formally classify XRP as a commodity under the Commodity Futures Trading Commission. Lawmakers are expected to advance the legislation in September 2025, giving Ripple and XRP a clearer regulatory path in the United States.
The measure comes after years of uncertainty surrounding XRP’s legal status. With the Securities and Exchange Commission stepping back, the CFTC would take responsibility for oversight, opening the door for broader institutional adoption. This move also places XRP alongside other commodities such as Bitcoin in U.S. markets.
Regulatory clarity is now seen as a critical milestone for Ripple’s expansion into global financial systems. Market participants say the bill could accelerate foreign exchange settlement trials already underway in North America, Europe, and Asia.
Banks and SWIFT Begin Settlement Pilots
Global banks are preparing to test XRP in foreign exchange settlement during the third quarter of 2025. The initiative includes both regional lenders and multinational institutions. The trials will focus on instant cross-border transactions, using XRP to reduce costs and improve speed.
SWIFT, the dominant network for international payments, is also experimenting with CBDC settlement layers that include XRP. The integration trials mark the first time XRP has been positioned directly inside SWIFT’s architecture, which handles more than $150 trillion in annual flows.
If successful, the pilots could pave the way for XRP’s broader use in mainstream banking infrastructure. Ripple executives have described the developments as evidence that blockchain settlement is entering its institutional phase.
Ripple Deepens Asia Ties With Linklogis
Ripple has expanded its footprint in Asia through a new partnership with Linklogis, a Chinese supply-chain finance firm. The agreement will see Ripple applications deployed on the XRP Ledger mainnet, aiming to streamline commercial financing and cross-border payments in China.
The collaboration highlights Ripple’s strategy of targeting high-volume financial corridors. By working with Linklogis, Ripple gains access to one of the largest trade financing ecosystems in Asia. The company said the deployment will reduce reliance on intermediaries and strengthen transparency across supply chains.
Industry observers note that the Linklogis deal complements Ripple’s existing partnerships in the region, reinforcing XRP’s role in enterprise adoption.
Coinbase Cuts XRP Holdings
Coinbase has sharply reduced its XRP reserves, sparking debate over the exchange’s strategy. Data shows its holdings fell 57 percent since last month and 69 percent since the second quarter of 2025. The decline pushed Coinbase out of the list of top ten XRP holders.
The move comes as regulatory clarity for XRP improves. Market watchers are split on whether Coinbase is adjusting its risk exposure or reallocating reserves ahead of ETF approvals.
Despite the reduction, XRP continues to gain traction among institutional investors. Several reports highlight growing allocations to XRP and other altcoins, including ADA and HBAR, as banks and funds seek diversified exposure beyond Bitcoin.
Outlook for 2026
By early 2026, XRP is projected to play a central role in tokenized assets, gold settlement, and cross-border debt markets. Analysts point to a potential “world financial reset,” in which XRP could serve as a digital backbone for international financial infrastructure.
While challenges remain, the combination of U.S. legislative clarity, global settlement pilots, and Ripple’s commercial partnerships positions XRP for deeper integration into banking systems worldwide.
XRP Bullish Pennant Analysis
A bullish pennant pattern is a continuation formation that appears after a strong upward move, consolidates in a narrowing range, and often signals the next leg higher once price breaks out.
On theXRP/USDT 4-hour chart, XRP shows such a structure, with the rally in mid-July forming the flagpole, followed by converging trendlines shaping the pennant. The lower support line around $2.86 and the descending resistance line together frame the consolidation zone. A breakout above resistance could confirm the pennant, projecting a move equal to the flagpole height. Based on the chart, that implies a potential 79 percent rally from the current price of $2.86 toward $5.17.
The 50-period EMA at $2.97 is trending just above the spot price, acting as dynamic resistance during the consolidation. A clear break and sustained close above the EMA would strengthen bullish momentum.
Volume plays a crucial role here. During the pennant’s formation, volume has steadily decreased, which is typical in consolidation phases. A breakout accompanied by a surge in trading volume would serve as confirmation that buyers are regaining control.
In summary, XRP is consolidating in a bullish pennant. If price clears resistance with strong volume and reclaims the EMA, the measured-move target sits at $5.17, marking a 79 percent upside from current levels.
XRP RSI Analysis – August 29, 2025
This Relative Strength Index (RSI) chart was created on August 29, 2025, at 08:24 UTC on TradingView. It uses the standard 14-period RSI with a moving average overlay.
At present, the RSI sits at 36.68, while its moving average stands higher at 48.77. This setup reflects bearish momentum because the RSI has slipped below both the neutral 50 mark and its moving average line.
Over the past two months, XRP’s RSI has oscillated widely between 30 and 70. Spikes in early July and early August briefly pushed the indicator into overbought territory, but each surge quickly reversed. More recently, the RSI has failed to sustain moves above 60, showing waning buying strength.
The latest drop toward the 30–40 zone suggests that sellers are taking control, and XRP is edging closer to oversold conditions. If RSI falls decisively below 30, it would signal stronger downside pressure. Conversely, a rebound from these levels could align with the bullish pennant breakout scenario highlighted on the price chart.
In summary, RSI momentum currently favors the bears, with XRP trading near a weak spot. However, its proximity to the lower band of the neutral zone means a sharp reversal remains possible if volume increases and buyers step back in.
