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▲ XRP, cryptocurrency decline/AI generated image ©
XRP (Ripple) fell for two consecutive days, pushed down to the $1.28 level, due to the fallout from the failure of the U.S. cryptocurrency market structure bill, the Clarity Act, to pass a Senate vote. With the gains that had soared to $1.50 at the beginning of the week quickly returned and technical momentum weakening, market attention is focused on whether the $1.25 support will hold and the Fed's monetary policy decision.
According to investment media outlet FXStreet on September 16 (local time), XRP showed weakness around $1.28 that day. It had risen to around $1.50 last Monday, but gave back a significant portion of its gains amid the failure of the Clarity Act to pass a Senate vote and caution ahead of the U.S. Federal Reserve's (Fed) monetary policy decision. The outlet suggested that if further declines continue, the correction range could expand to $1.20, a key demand zone.
The Clarity Act failed to end debate in the U.S. Senate the previous day, with 49 votes in favor and 50 against. All 49 votes in favor came from the Republican Party. As the bill's progress stalled, market attention is shifting to the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Wayne Huang, co-founder and CEO of XREX Group, explained that even if congressional legislation is delayed, the SEC and CFTC can provide clearer standards to the market through rule-making and regulatory guidelines under their existing authority.
However, the short-term legislative path for the Clarity Act has become more uncertain ahead of the November midterm elections. The outlet reported that the possibility of the bill being enacted into law by 2026 has become even lower, and there is a possibility that a new bill will be needed next year. The cryptocurrency market is also continuing its sluggish trend as investors are reluctant to increase risk exposure ahead of the Fed's decision. Analysis suggests that if monetary policy becomes more restrictive, investment funds may shift to relatively stable assets such as U.S. Treasury bonds, and borrowing costs may increase, putting pressure on the liquidity of risk assets.
Technically, XRP is trading below its 50-day Exponential Moving Average (EMA) of $1.28 and its 200-day EMA of $1.36, continuing a short-term bearish trend. A long-standing downward resistance trend line is also capping the price. The Relative Strength Index (RSI) has fallen to around 45, and the Moving Average Convergence Divergence (MACD) remains in negative territory, indicating selling-dominant momentum. On the other hand, the outlet analyzed that with the 100-day EMA at $1.25 providing support, the current movement appears to be a correctional phase rather than an abrupt collapse.
The key price level that will determine XRP's short-term direction is $1.25. A clear break below this could deepen the correction, potentially extending downward pressure to the previously mentioned $1.20 demand zone. Conversely, even if $1.25 holds, a bullish reversal would first require recovering the 50-day EMA at $1.28, after which the 200-day EMA at $1.36, coinciding with the downtrend line, is expected to act as a stronger resistance level.
*Disclaimer: This article is for investment reference only and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*
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