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- XRP faces strong resistance near $1.40 with downside risk toward $1.
- Declining network activity and ETF outflows signal weakening demand.
- US CLARITY Act progress could reshape the crypto regulatory landscape.
Momentum is building in Washington around long-awaited crypto legislation, even as market signals for XRP point to a fragile near-term outlook. Developments on both fronts highlight a pivotal moment for the digital asset industry, where regulation and market dynamics are increasingly intertwined.
CLARITY Act Edges Closer to Senate Action
Paul Grewal, chief legal officer at Coinbase, says the US Digital Asset Market Clarity Act is moving closer to a key Senate Banking Committee markup. Speaking recently, Grewal noted lawmakers are nearing consensus on the core structure of the bill, though disagreements persist over stablecoin yield provisions.
The debate centers on whether stablecoin issuers should be allowed to offer interest-like rewards. Traditional banks argue such incentives could pull deposits away from the banking system, while crypto advocates dismiss those concerns as unsupported.
The bill has already cleared the House of Representatives, but progress in the Senate has stalled since Committee Chair Tim Scott delayed a planned markup earlier this year. If lawmakers resolve the yield dispute, the legislation could advance to a full Senate vote—potentially establishing the first comprehensive federal framework for digital assets.
Meanwhile, Donald Trump has publicly criticized banks for slowing progress, signaling growing political pressure to finalize the bill.
XRP Price Struggles Below Key Resistance
While policymakers debate regulation, XRP is grappling with technical and onchain weakness. The token is trading near $1.30, significantly below its multi-year high of $3.66, and faces strong resistance between $1.40 and $1.45.
This zone is critical, as more than 1.1 billion tokens were previously accumulated there. Analysts warn that any attempt to break higher could trigger selling from investors seeking to exit at breakeven.
From a technical perspective, XRP is testing the lower boundary of a symmetrical triangle pattern. A confirmed breakdown could push prices toward $1.14, with a broader downside target near $1 if bearish momentum continues.
Declining Network Activity and ETF Outflows
Onchain data reinforces the cautious outlook. Daily active addresses on the XRP Ledger have dropped sharply, hovering around 50,000—well below previous peaks in 2025. Transaction volumes have also fallen, signaling reduced user engagement and liquidity.
Also Read: Ripple Expands RLUSD to South Korea—XRP Adoption Set to Surge
Institutional sentiment appears to be weakening as well. Spot XRP exchange-traded funds have recorded consistent outflows, with March marking the first negative month since their launch. Assets under management have declined notably, reflecting both price pressure and softer demand.
The crypto market is at a crossroads. Regulatory clarity in the US could unlock long-term growth, but unresolved disputes continue to delay progress. At the same time, XRP’s weakening fundamentals and technical structure suggest caution in the near term. Together, these trends underscore a market balancing optimism about future rules with present-day uncertainty.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
