In brief:
- XRP lost the $1.12 support as Senate delays surrounding the Clarity Act weakened market confidence and revived downside risks.
- Analyst Diana highlighted that XRP must defend $1.08 to avoid a deeper decline toward the $0.87 liquidity zone.
- John Thune indicated that the Clarity Act will likely miss the August Senate timeline, increasing regulatory uncertainty across cryptocurrency markets.
XRP has entered a critical technical zone after losing the important $1.12 support that buyers defended in recent sessions. According to crypto analyst Diana, the breakdown has revived the possibility of a decline toward the $0.87 liquidity zone. The bearish shift followed growing uncertainty over U.S. crypto legislation. Consequently, traders reduced risk exposure as the token slipped closer to its next major support at $1.08.
According to Diana, XRP failed to sustain momentum above $1.145 before sellers regained control. That rejection forced the token below its previous support and turned $1.12 into immediate resistance.
Additionally, the Relative Strength Index rolled over from overbought territory, reflecting weaker buying momentum. The latest technical structure leaves the $1.08 support as the market’s next decisive level.
Also Read: Alert: Uphold to Remove EVR Balances from XRP Holders’ Accounts by August?
Senate delay raises uncertainty for crypto market
The latest market weakness coincided with new comments from Senate Majority Leader John Thune regarding the Digital Asset Market Clarity Act. According to Thune, the legislation will likely not pass the Senate before August as previously expected.
However, he indicated lawmakers could still begin Senate floor consideration before the summer recess. That possibility offers some progress, although it falls short of market expectations.
Besides, the Senate must address several competing priorities before lawmakers leave Washington for campaign activities. Even if senators eventually approve the bill, the House of Representatives must also pass the legislation before it reaches President Donald Trump. Consequently, investors viewed the delayed timeline as another source of regulatory uncertainty, adding pressure across the broader cryptocurrency market.
Technical outlook keeps $0.87 downside target in play
According to Diana, buyers must successfully defend the $1.08 support to prevent another wave of selling. Holding that level could allow XRP to stabilize before attempting to recover the lost $1.12 resistance. Moreover, reclaiming $1.145 would strengthen the short-term technical outlook and improve bullish momentum.
However, Diana noted that losing the $1.08 support would expose XRP to the next major liquidity zone between $0.90 and $0.87. She explained that several analysts continue to identify that range as the likely destination for the current correction before a stronger recovery can develop. As a result, traders are closely monitoring price action around the current support area for confirmation of the next market direction.
Conclusion
XRP remains vulnerable while regulatory uncertainty and weakening technical signals continue to pressure market sentiment. A successful defense of the $1.08 support could stabilize the token, while a breakdown below that level would increase the likelihood of a move toward the $0.90 to $0.87 liquidity zone.
Also Read: Ripple and Notabene Partner to Scale RLUSD Across Regulated Payment Network
