XRP is pressing against a critical resistance zone as the Senate Banking Committee's markup of the CLARITY Act approaches. Traders are watching every tick as the token attempts to break free from a level that has held it back for weeks.
At the time of writing, XRP trades at $1.47, up 2.5% in the last 24 hours after briefly dipping to $1.43. The breakout level—a confirmed daily close above $1.50—has drawn intense focus. What happens in the next few hours could define XRP's trajectory for the rest of the quarter.
The Legislative Catalyst: CLARITY Act Markup
The Senate Banking Committee, chaired by Tim Scott, scheduled the CLARITY Act markup for May 14 at 10:30 AM EST. This bill would codify XRP's commodity status into federal law, following the SEC-CFTC joint ruling of March 17, 2025. Over 120 crypto firms urged Senate passage in April, and community sentiment is running high.
Polymarket passage odds currently sit between 62% and 72%. Spot XRP ETFs have absorbed $34.2 million in inflows this week alone, pushing total AUM toward $1.5 billion since their November 2025 launches—the strongest single-day intake since January 5.
The CLARITY Act represents a potential turning point for the entire crypto industry. If passed, it would provide regulatory clarity that has been absent for years. For XRP specifically, it would remove the lingering shadow of the SEC lawsuit and potentially unlock institutional demand that has been waiting on the sidelines.
Technical Breakout: $1.47 Finally Falls
XRP recently broke $1.47 on the heaviest volume in weeks. That level had rejected the token four times this month alone. This is not noise—on-chain data backs the move.
Wallets holding 10,000 or more XRP have reached a record 332,230, signaling steady accumulation even as broader whale counts show some rotation. The bid has conviction behind it. Immediate resistance lies between $1.50 and $1.60. The 200-day moving average at $1.80 is the next meaningful magnet above that. Key support sits at $1.28 with the $1.20 floor below it.
Technical analysts note that the breakout comes with increasing volume, suggesting genuine buying pressure rather than a false move. The Relative Strength Index (RSI) has moved above 60, indicating bullish momentum without entering overbought territory. The MACD has also turned positive, with the signal line crossing above the histogram.
On-Chain Signals and Institutional Interest
Beyond the price action, on-chain data paints a picture of accumulation. The number of addresses holding between 10,000 and 100,000 XRP has increased 2.5% over the past week, while those holding 1 million to 10 million XRP have grown by 1.8%. This suggests that mid-sized investors are building positions in anticipation of the CLARITY Act vote.
Meanwhile, institutional flows remain robust. The $34.2 million in weekly ETF inflows represents the highest level since early January. Standard Chartered has projected that full passage of the CLARITY Act could drive $10 billion in ETF inflows by year-end, with XRP potentially reaching $8 per token.
The aggregate market cap for XRP has climbed to approximately $85 billion, placing it firmly among the top digital assets by market capitalization. Trading volumes have surged 45% over the past 24 hours, with the XRP/BTC pair showing particular strength as Bitcoin remains range-bound.
Historical Context: XRP and Regulatory Battles
To understand the significance of today's vote, it is worth revisiting XRP's turbulent history with regulators. The SEC lawsuit, filed in December 2020, alleged that XRP was an unregistered security. This legal cloud suppressed XRP's price for years, preventing major exchanges from listing it and deterring institutional investors.
The tide began to turn in July 2023, when a federal judge ruled that XRP was not a security when sold to retail investors on exchanges. This partial victory sent XRP soaring above $0.90 at the time, but the uncertainty persisted until the SEC-CFTC joint ruling of March 2025 finally clarified XRP's status as a commodity.
The CLARITY Act would enshrine this ruling into law, providing a permanent framework that future SEC administrations would find difficult to overturn. The bill has bipartisan support, with key sponsors from both parties emphasizing the need for American competitiveness in blockchain technology.
Market Implications and Potential Scenarios
A clean CLARITY Act markup could push XRP above $1.50 on strong volume, targeting $1.60, then the $1.80 to $1.85 range. Standard Chartered's projection of $8 on full passage with $10 billion in ETF inflows materializing by year-end remains on the table if the bill advances successfully.
Conversely, a disappointing or delayed markup could fail to hold $1.40 and reopen a slide toward $1.30, potentially $1.20. A broad risk-off wave would accelerate that move quickly. The setup is clean—the clock is ticking. If today's session closes without a confirmed break above $1.50, momentum stalls, and the range trade resumes.
The broader crypto market has been consolidating over the past week, with Bitcoin hovering near $68,000 and Ethereum struggling to hold $3,200. XRP's outperformance today could signal that regulatory catalysts are once again driving sector rotations. Should the CLARITY Act pass the Senate Banking Committee, it would then move to the full Senate, where it would need 60 votes to overcome potential procedural hurdles.
The House version of the bill has already gained momentum, with Speaker Mike Johnson indicating willingness to bring it to a vote. The path to law remains uncertain, but today's markup represents the most concrete step toward regulatory clarity that XRP has ever seen.
Source: Cryptonews News