XRP Price Slips as CLARITY Act Delay and Weak Market Sentiment Pressure Bulls

XRP price dropped 1.26% to around $1.09 as broader crypto market weakness and uncertainty surrounding U.S. crypto regulation weighed on investor sentiment. The total cryptocurrency market capitalization fell 1.42% to $2.18 trillion over the past 24 hours, while Bitcoin declined 1.24% as rising U.S. Treasury yields and geopolitical tensions pushed investors toward lower-risk assets.

XRP previously attempted to reclaim the $1.12 level, but buyers failed to sustain momentum above key moving averages, leaving the token vulnerable to additional downside.

Market participants continue to monitor the CLARITY Act, a proposed bipartisan bill that would define regulatory responsibilities between the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Supporters believe the legislation could improve regulatory clarity, strengthen institutional confidence, and encourage broader crypto adoption.

However, Senate Majority Leader John Thune indicated that the bill is unlikely to receive a final vote before lawmakers begin their summer recess, although discussions could still begin before Congress adjourns. Senator Cynthia Lummis recently introduced an updated draft featuring stronger customer asset protections, but disagreements over ethics provisions, stablecoin incentives, and other measures continue to slow progress.

Galaxy Research Head Alex Thorn also lowered his estimate for the bill's passage in 2026 to 30%, citing limited legislative time and ongoing negotiations. Until regulatory clarity improves, XRP is likely to remain influenced by macroeconomic conditions and Bitcoin's overall market direction.

Meanwhile, derivatives activity reflected growing caution among traders. According to CoinGlass, XRP trading volume declined 2.72% to $1.92 billion, while open interest fell 2.56% to $2.40 billion, suggesting reduced leveraged participation and weaker speculative demand.

From a technical perspective, XRP traded near $1.089 after breaking below a rising channel and losing support at $1.12 and $1.10. The Relative Strength Index (RSI) slipped to 35.53, while the MACD continued to signal bearish momentum.

The key support level remains at $1.07. A decisive break below that area could expose XRP to further losses toward $1.06 and potentially $1.04. On the upside, bulls must reclaim $1.10 before targeting resistance at $1.12, with additional upside potential toward $1.15 and the major $1.20 resistance level if buying momentum returns.