CLARITY Act Vote Threatens XRP Short Squeeze, $9 Million on the Line

The US Senate's impending vote on the CLARITY Act has created a volatile situation for XRP short sellers. If passed, the bill would clarify the authority between the SEC and CFTC, potentially leading to a significant shift in the market.

Currently, XRP is trading at around $1.40, just 7 cents away from triggering a short squeeze. According to CoinGlass data, XRP shorts are facing forced liquidation of $9.46 million in positions if the price reaches $1.4644.

Binance has seen a significant increase in futures trading volume and open interest, with short liquidations already exceeding $1.67 million. Bybit and Hyperliquid have tilted towards longs, while sellers are struggling to hold their line of defense on Tier-2 exchange BingX.

The outcome of the vote will serve as a binary trigger for XRP, with success sending the token above $1.4644 and potentially reaching a target of $1.60. Failure would send XRP back towards support in the $1.31-$1.35 range.