XRP price pulled back for the second consecutive day after the Senate withdrew the planned CLARITY Act markup. Ripple token dropped to $2.090, down from this week’s high of $2.188. It also remains in a local correction after falling by 13% from its highest point this year.
XRP price falls after CLARITY Act Markup Delay
Ripple and other altcoins retreated after the Senate Banking Committee withdrew the planned markup of the CLARITY Act. This withdrawal happened after Coinbase withdrew its support for the landmark legislation.
Brian Armstrong, the company’s CEO, identified four main issues in the bill. Its most important issue is that the bill would put limits on stablecoin rewards, which it currently offers.
After reviewing the Senate Banking draft text over the last 48hrs, Coinbase unfortunately can’t support the bill as written. There are too many issues, including: – A defacto ban on tokenized equities – DeFi prohibitions, giving the government unlimited access to your financial
Senators added these limits after facing substantial pressure from banking and credit union lobbyists. These entities argue that allowing these rewards will lead to capital flight from their institutions to crypto exchanges.
Potential catalysts for the Ripple token
Despite the challenges, the XRP price has numerous bullish catalysts that may boost its performance. First, Ripple Labs has continued to score regulatory wins in the past few months. For example, it received a license to operate in Luxembourg, which is a member of the European Union.
The Luxembourg license came after it received a similar one from the UK. It brings its global operating licenses to over 70. This license means that the company will be able to operate in these countries and have deals with institutions.
We’ve secured our preliminary Electronic Money Institution license approval from Luxembourg’s Commission de Surveillance du Secteur Financier (CSSF). 🇪🇺 This is a pivotal step toward scaling Ripple Payments across the EU, bringing institutional-grade digital asset infrastructure
Just recently, the Office of the Comptroller of the Currency (OCC) granted Ripple a banking charter in the United States. This license helped to transform it from a crypto payments provider into a federally regulated institution. It also allows it to offer custody and other banking solutions.
Second, XRP ETFs have continued to do well since their approval late last year. The funds added over $10.6 million in inflows on Wednesday, the fifth consecutive day of inflow. The funds have now brought in $1.26 billion in inflows and have $1.56 billion. These inflows will likely continue to accelerate since the assets account for 1.19% of XRP’s market capitalization. Bitcoin and Ethereum have a ratio of over 5%.
Third, Ripple has become a major company in the booming stablecoin industry. Ripple USD (RLUSD) has gained $1.3 billion in assets, with nearly $400 million of them being in the XRP Ledger.
Macro factors will likely boost the XRP price in the near term. For one, the Federal Reserve is expected to maintain a dovish tone this year, with analysts expecting two to three cuts.
Ripple price technical analysis
The three-day chart shows that the XRP price has rebounded after finding a strong support at $1.7688. It has now moved slightly above the descending trendline that connects the highest swings since October 1.
The coin is also attempting to flip the 25 and 50-day Exponential Moving Averages (EMA). Therefore, the most likely scenario is where the coin will rebound and continue rising. If this happens, the next key level to watch will be at $3.
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