XRP Price Forecast: XRP clings to 50-day EMA support after CLARITY Act setback

Ripple (XRP) trades lower around $1.28 on Wednesday, as investors broadly assess the impact of the failed United States (US) Senate vote on the CLARITY Act and the upcoming Federal Reserve (Fed) monetary decision. 

The remittance token has trimmed early-week gains that tagged highs around $1.50 on Monday and now holds key moving-average support. Further declines could stretch the down leg toward the critical $1.20 demand area.

CLARITY Act fails to advance 

The US Senate failed 49-50 to advance the CLARITY Act, a comprehensive market-structure regulation framework, on Tuesday. All 49 supporting votes were from the Republicans. With the bill now stalled in Congress, attention is shifting to key agencies, including the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC), to provide the much-needed oversight. Both agencies have indicated they are ready to continue pursuing clearer guidelines within their existing authority.

“The cloture vote not passing does not slow the digital asset market down. Stablecoin adoption and real-world use cases are already moving faster than the legislative process, and the SEC and CFTC can still provide greater clarity through rulemaking and regulatory guidance, even without legislation,” Wayne Huang, the Co-founder and Group CEO of XREX Group, said in an emailed comment.

Meanwhile, the immediate path to passing the bill is in disarray as lawmakers head into the November mid-term elections. The odds of the bill becoming law in 2026 have further dwindled, suggesting that the process could require a new bill next year.

Cryptocurrency prices remain lethargic as market participants are reluctant to increase exposure, perhaps until after the Fed's monetary policy decision. A stricter monetary policy could squeeze liquidity out of risk assets as investors seek stable assets such as US Treasuries and higher borrowing costs become a pain point.

Technical Analysis: XRP sellers retain control

XRP trades around $1.28, keeping a bearish near-term tone as it holds below the 50-day Exponential Moving Average (EMA) at $1.28 and the 200-day EMA near $1.36. The spot price remains trapped under the long-running downward resistance trendline, while the 100-day EMA at $1.25 offers underlying support, suggesting a consolidative pullback rather than an outright collapse.

Momentum is soft, with the RSI hovering around 45 and the MACD in negative territory, hinting that upside attempts could continue to fade beneath overhead supply.

On the topside, immediate resistance is seen at the 50-day EMA around $1.28, with the 200-day EMA near $1.36 acting as a stronger cap in line with the descending trendline structure. On the downside, initial support is aligned with the 100-day EMA at $1.25. A clear break below this level would open the door to a deeper correction, while holding above it would keep the pair confined in a range beneath the clustered moving-average resistance.

(The technical analysis of this story was written with the help of an AI tool. Know more.)