XRP is trading near $1.38 after recovering roughly 4.75% over the last 24 hours. The token remains slightly lower over the past week, with support forming near $1.31. XRP approached $1.70 during August before selling pressure pushed prices lower, and traders are now watching whether stronger technical conditions can support another move toward the $2 level. Key support sits near $1.31-$1.33, while resistance is concentrated around $1.88 and $2.

CLARITY Act Timing Keeps Regulation in Focus

Regulatory policy remains central to XRP's short-term market outlook. The CLARITY Act, formally the Digital Asset Market Clarity Act, is designed to establish a clearer division of oversight responsibilities between the SEC and CFTC for digital assets, which is why its legislative progress matters so much for tokens like XRP that have long faced regulatory ambiguity.

SEC Chair Paul Atkins says the agency's crypto proposal aligns with expectations for the CLARITY Act. Atkins describes statutory backing as necessary for long-term regulatory stability, noting that current SEC authority can support new rules, although future commissions could later change them. (X post)

The Senate procedural vote remains scheduled for September 15, while disagreements over ethics provisions are unresolved. That uncertainty is keeping attention on whether the bill can advance during 2026. However, despite the worries, CFTC Chair Mike Selig has said the agency is ready to move quickly if Congress does not pass the legislation.

XRP Price Holds Above Key Long-Term Support

Ahead of the CLARITY Act passage, crypto analyst Dark Defender has been tracking XRP's 100-month exponential moving average as a major long-term support level. He calls the 100M EMA XRP's "Parabolic Surge Line" because it has remained defended across past market cycles. (X post)

XRP is also trading above the monthly Ichimoku Cloud, while August closed above the 50-month EMA. These conditions keep the broader monthly structure constructive, although price remains below recent August highs.

Dark Defender's Fibonacci levels place $1.3798 near the 61.8% retracement area. The next major technical reference is $1.8815, which sits close to the $2 recovery target. A sustained break above that zone could bring higher extensions into view. However, XRP still needs stronger buying pressure before longer-term targets become technically relevant.

EGRAG Maps Wave 5 Targets Above $6

Another analyst, EGRAG CRYPTO, is using a three-month Elliott Wave structure to assess XRP's broader cycle. Elliott Wave analysis is a charting framework that attempts to identify recurring price patterns within market cycles, and its projected targets depend heavily on the assumed wave structure holding. His model shows Wave 1 gaining about 225%, while Wave 3 advanced roughly 300% to 365%. (X post)

EGRAG has calculated Wave 1 and Wave 3 together at about 589%. He is applying a 61.8% projection to estimate a possible Wave 5 target zone.

The analyst is watching $6.19 to $8.07 as the first major Wave 5 area. He also lists $11.45, $13, and $17 as higher extensions if momentum strengthens. Those projections remain well above the current price and depend on the broader bullish structure remaining intact. In the near term, XRP must first clear resistance near $1.88 and $2.

Can XRP Price Reclaim $2?

XRP's immediate path toward $2 rests on technical resistance and broader market conditions. The $1.31-$1.33 area has recently served as support following the August pullback. A break above $1.88 would place XRP close to the $2 psychological level. Holding above the 50-month EMA would also support Dark Defender's longer-term structure.

Institutional demand provides another market factor, as U.S. spot XRP ETFs have recorded strong recent inflows. Cumulative inflows have reached about $1.68 billion, according to figures cited in market reports. Those products give traditional investors regulated exposure to XRP without holding the token directly, and their flow trends have become a widely watched gauge of institutional sentiment alongside technical setups.

For now, the $2 level remains a resistance target rather than a confirmed breakout. XRP needs sustained buying above $1.88 while regulatory uncertainty around the CLARITY Act continues.

This article is for informational purposes only and does not constitute financial advice. Cryptocurrency markets can experience sharp price movements.

Source: The Market Periodical