Political developments in the United States this week have cleared a major hurdle for XRP. The Senate Banking Committee approved the Digital Asset Market Clarity Act (CLARITY Act), a bill designed to bring much-needed clarity to crypto asset markets. The legislation now awaits a vote in the full Senate. If passed, it would define XRP’s legal status and also pave the way for the US dollar-backed RLUSD stablecoin to become fully compliant.
Key rules for stablecoins and RLUSD
With the CLARITY Act, regulations for issuing dollar-based tokens will be clarified. Under the new framework, offering passive earnings to investors will likely be prohibited, while transaction-based incentives may still be allowed. This change would enable Ripple to expand use of its RLUSD stablecoin, especially in cross-border payments. Ripple has long positioned $XRP as a bridge asset for international money transfers.
Until now, there have been significant regulatory risks keeping major banks from adopting RLUSD. However, recent developments—including Ripple’s ongoing pilot project with JPMorgan and Mastercard to test tokenized US Treasury bills on the XRPL network as a payment method—have sparked fresh optimism among investors.
XRP tests key resistance levels
All these fundamental changes have also influenced XRP’s price chart. While the cryptocurrency largely traded sideways in recent weeks, it is now approaching the crucial psychological resistance of $1.50. After months of consolidation, $XRP has maneuvered within a narrow band and is just a few points away from the middle line of the weekly Bollinger Bands.
According to analysts, a weekly close above this level would break the prolonged sideways trend and could propel the price up to the upper boundary of the Bollinger Bands, currently at $2.03. Volatility is currently compressed into a very tight range, which historically has preceded strong trending moves.
Buyers managed to outpace sellers this week, pushing XRP to $1.54 and briefly crossing above the middle band. However, the market failed to close the week at this level, pulling the price back to the $1.45 range.
Critical tests ahead for XRP trajectory
Should a clear breakout above $1.50 be confirmed, XRP is expected to enter the upper Bollinger range, with $2.03 as the next major target. For buyers, the key support remains at the lower band boundary of $1.03.
In the coming days, market observers will be watching closely to see whether XRP decisively breaks through the $1.50 threshold or reverts to its previous sideways pattern. If the price climbs toward $2, it could signal a return to a global uptrend for XRP.
