XRP Falls 8% This Week as Senate Delays Clarity Act and Fed Decision Looms
Key Takeaways
- •The U.S. Senate shelved the Clarity Act, reducing the chance of a vote before the August recess begins around August 7.
- •The bill is important to XRP because it would establish the token’s legal status as a commodity.
- •XRP is trading at $1.06 and is down nearly 8% over the past week.
- •XRP’s chart has formed a confirmed death cross, while RSI at 40.9 and ADX at 11.2 point to weak momentum and no strong trend.
- •If XRP holds above $1.05, it could rebound toward $1.10 to $1.12, while a drop below $1.045 could open the way to $1.01 and then $0.97.
XRP is trading at $1.06, down nearly 8% over the past week.
The decline comes as traders track two closely watched developments: an upcoming Federal Reserve rate decision and the U.S. Senate’s decision to shelve the Clarity Act, a bill viewed as important to XRP’s regulatory outlook.
On Monday, the Senate set aside the Clarity Act in favor of other legislation, including a Russia sanctions bill and federal nominations. The chamber’s August recess begins around August 7, leaving only a narrow window for the bill to advance this year. If lawmakers do not act before recess, the next realistic chance for a vote may not arrive until 2027.
The Clarity Act matters to XRP because it would formally establish XRP’s legal status as a commodity. Banks and ETF issuers have said that clarity of this kind is a key condition before they build new products around the asset.
Standard Chartered has floated a price target of $8 for XRP. That projection, however, applies only if the Senate passes the bill and exchange-traded funds attract between $4 billion and $8 billion in new capital.
The Federal Reserve’s meeting is scheduled for July 29. New Fed Chair Kevin Warsh is expected to keep rates steady in the 3.50% to 3.75% range, although some traders have not fully ruled out a rate increase. CME FedWatch data showed hike odds near 38% over the weekend, the highest reading of this cycle. That makes the Fed meeting another short-term event traders are using to gauge risk appetite across crypto markets, alongside the Senate’s timetable.
What the charts show
XRP’s chart currently shows a confirmed death cross, a technical pattern that occurs when the 50-day moving average falls below the 200-day moving average. Traders often view that as a sign that the medium-term trend is weakening.
The Relative Strength Index, or RSI, stands at 40.9. On a 0 to 100 scale, that is below the neutral level of 50 but not yet low enough to signal oversold conditions.
The Average Directional Index, or ADX, is at 11.2. Readings below 20 typically indicate that a market lacks a strong directional trend.
Support and resistance levels
If XRP remains above $1.05, it could recover toward the $1.10 to $1.12 range. A move below $1.045 could expose the token to $1.01 and then $0.97.
Before the current decline, XRP reached an all-time high of $3.65. The token is now more than 70% below that peak.
For comparison, Bitcoin is trading near $63,400, also well below its June high of roughly $80,000.
Traders will be watching the Fed’s July 29 decision for any indication of possible rate cuts in September, while the Senate’s handling of the Clarity Act remains a key policy milestone for XRP’s broader regulatory backdrop.