The Senate’s decision to punt the Clarity Act has left XRP at a precarious crossroads. Lawmakers adjourned without taking up the legislation, pushing any market-structure vote at least to September — and while most major cryptocurrencies shrugged off the delay, XRP did not. Why this matters The Clarity Act, in draft form reported by Decrypt, would draw a statutory line between securities and commodities. That draft would have explicitly classified XRP (alongside Solana and Dogecoin) as a non-security, placing those tokens under the Commodity Futures Trading Commission (CFTC) rather than the Securities and Exchange Commission (SEC). For Ripple — which has waged a years-long legal fight with the SEC over whether XRP is an unregistered security — that statutory clarity would do what settlements can’t: provide a single, binding federal answer for exchanges, custodians and regulators nationwide. Ripple did agree to pay $50 million to settle its cross-appeal with the SEC, but a law would be a much broader resolution. Price action and market context XRP was the only major token in the top 10 by market cap to close in the red on the day, dropping 2.05% and finishing the week down about 3% — the weakest performance among the majors. By contrast, Bitcoin was largely flat and Dogecoin gained 1.38%. XRP is trading around $1.028 with a market capitalization near $64 billion, a daily decline of roughly 0.71% after a red candle left it hovering just above the $1 psychological floor. That price is the second-lowest daily close since early 2024, above only last month’s $0.9153 low. Technical picture Technically, XRP is in a clear downtrend. The token peaked near $3 in 2025 and has been sliding since. The 50-day EMA has crossed below the 200-day EMA — a classic “death cross” — and the current price sits below both averages, meaning moving averages offer little support underneath. Momentum indicators paint a cautious picture: the RSI is 35.9 (bearish but not yet oversold), and the ADX is 11.9, indicating the move lacks strong conviction and trading could remain choppy. The Squeeze Momentum indicator is “off,” signaling expanding volatility rather than a compressed setup that usually precedes sharp breakouts — so moves may continue to be gradual. What would change the narrative Bull case: A sustained daily close above $1.10 (first meaningful resistance in the lower Fibonacci zone) and then $1.13 (daily point of control) would suggest the floor is holding and could attract fresh buying. Progress on the Clarity Act — even if it’s now unlikely before September — would also be a major bullish catalyst for traders who bet on regulatory clarity. Bear case: A drop and daily close below $1.00 would open the path to $0.9153, the lowest chart point since 2024. Given the prevailing downtrend, that scenario is far from improbable and would effectively erase the post-2024 recovery. Market sentiment Short-term sentiment shows some divergence: on Myriad, a prediction market from Decrypt’s parent company Dastan, traders are pricing about a 77% chance that XRP stays above $1 over the coming weekend. So while charts and headlines suggest vulnerability, some traders remain optimistic that the $1 line holds — for now. Bottom line With the Clarity Act delayed, XRP remains in legal and price limbo. The token is technically weak and vulnerable to further losses if $1 breaks, but a close back above $1.10–$1.13 or renewed momentum behind regulatory reform could quickly flip the story. For investors and traders, that $1 mark is the key line to watch. Read more AI-generated news on: undefined/news