XRP's bullish momentum weakened on July 27, despite the U.S. Senate moving closer to a potential vote on the CLARITY Act, a bill aimed at regulating the cryptocurrency sector. The token hit resistance around $1.11 three times within 24 hours and subsequently dropped to about $1.09.
Trading volume surged to nearly $956 million, marking a 63% increase according to CoinMarketCap data. This decline coincided with a rise in the probability of the CLARITY Act becoming law by 2026, now estimated at 38%, a 7% increase over the past week based on Polymarket insights.
Top Senate Republicans like Banking Chair Tim Scott and Agriculture Chair John Boozman are pushing for expedited floor action after the merged text of the bill was released last week. Industry observers, including Brendan Pedersen, suggest a vote could take place the week of August 3, just before Congress goes on recess.
Technical Outlook Amid Regulatory Developments
Since mid-June 2026, XRP has been trading sideways on the four-hour chart, consolidating near a support level around $1.09. News surrounding the CLARITY Act last week prompted buyers to test resistance near $1.15. However, indicators show bearish signs: the Relative Strength Index dropped below its 14-day moving average, and the MACD is approaching a bearish crossover.
If XRP closes consistently below $1.09, sellers could push the price towards liquidity zones at $1.05 and $1.02. Conversely, breaking above $1.11 could reignite upward momentum targeting $1.15. This technical setup unfolds as lawmakers prepare to address significant regulatory clarity that could reshape crypto markets.
