XRP Price Falls as CLARITY Act Nears Make-or-Break Deadline: What’s Next?

XRP price fell 1.26% to $1.09 as wider market pressure and regulatory uncertainty weakened demand. 

The broader crypto market declined 1.42% to $2.18 trillion in 24 hours. Bitcoin fell by 1.24%, with increasing Treasury yields and geopolitical risks causing investors to seek less risky assets. XRP price previously traded close to $1.12 but the buyers did not manage to sustain momentum past critical moving averages.

CLARITY Act Faces Narrowing Senate Window

The CLARITY Act still stands as the primary policy trigger that traders are keeping an eye on regarding the next step of XRP. The bipartisan proposal is to separate the regulation of digital assets by the SEC and CFTC. 

The proponents reckon that more transparent regulations would enhance institutional trust and bring new investments to the largest cryptocurrencies.

Nonetheless, John Thune, the Majority Leader of the Senate, indicated that it is unlikely that a final vote before the summer recess is possible. He remains hopeful that lawmakers can initiate deliberation before senators move out of Washington. 

Protections on customer assets were released by Senator Cynthia Lummis in an updated draft. However, there are still debates on government ethics, stablecoin incentives, and provisions.

CLARITY Act Likely to Miss Pre-Recess Vote as Thorn Cuts 2026 Passage Estimate to 30%

According to CoinDesk, Senate Majority Leader John Thune said the CLARITY Act is unlikely to receive a final vote before the summer recess, though he hopes to begin Senate consideration… pic.twitter.com/ztvpx46qGR

— Wu Blockchain (@WuBlockchain) July 24, 2026

Head of Galaxy Research, Alex Thorn, reduced his probability of passing through 2026 by half to 30%. He mentioned the shortening of the legislative calendar and time on which to negotiate. Until it advances at a higher pace, XRP can be vulnerable to macroeconomic factors and technical opposition.

The recovery might be sustained in case XRP regains moving averages and wider sentiment is better. Further delays may continue to keep prices fluctuating around the support levels. The next signal will be followed by traders observing developments in the Senate and Treasury yields, as well as the direction of Bitcoin.

XRP Open Interest Drops to $2.40B as Market Caution Grows

The XRP derivatives activity also declined with the trading volume decreasing by 2.72% to 1.92 billion in the last period. Open interest also fell 2.56% to $2.40 billion, indicating less involvement in leveraged XRP markets.

The coinciding decline indicates traders liquidated deals at the time when new speculative demand was low. The low volume shows that fewer contracts were traded than during the previous period. Meanwhile, declining open interest shows outstanding derivatives positions also decreased.

XRP Price Prediction: Can Buyers Defend the Crucial $1.07 Level?

The XRP price traded at $1.089 after sellers increased pressure across the four-hour chart.

XRP price recently broke below a rising channel after failing to maintain momentum above the $1.15 resistance level.

The drop took the price below $1.12 and $1.10, which proved that the short term structure is weaker.

The Relative Strength Index fell to 35.53, putting XRP in the neutral area. The MACD also has a bearish pattern, where the negative momentum is growing below the line of neutrality.

The immediate support is almost at $1.07, where the buyers had defended the price in earlier market reversals. A test through the base of the former channel around $1.06 may be revealed with a confirmed break below $1.07.

Further selling may then send XRP price toward $1.04, which provided support during late June.  To recover, the XRP price has to find its way to regain value above $1.10 before it can break through the higher resistance zone of $1.12. An extended upwards movement above $1.12 might aim at $1.15 and then the significant $1.20 resistance point.