XRP Price Slides as Senate Drops Clarity Act and Fed Decision Looms

Global growth is not as good as it has been all year in crypto markets.

New Federal Reserve Chairman Kevin Warsh, at his second FOMC meeting, is expected to keep rates at 3.50%-3.75%, but CME FedWatch puts the probability of a hike near 38% as recently as last weekend-highest on the tour. Even a hawkish attitude can destroy things that can cause accidents. Bitcoin is stuck around $63,400–$64,000, below its June highs of around $80,000, and altcoins are starting to struggle.

XRP imagesThe cryptocurrency created by the founders of Ripple, had a moment of hope this month that now feels like a distant memory. Like Decrypt report on July 21, the currency jumped a modest 3.25% to $1.1485 as reports broke that President Donald Trump had agreed to the long-standing Clarity Act, narrowly overruling the Senate’s disapproval of Polymarket to 43%. This lasted for almost a whole week.

On Monday, the Senate suspended the Clarity Act to advance the Russia sanctions resolution and government nominations. The chamber’s August recess begins around August 7 – which means there’s little chance the bill will pass this year. Miss that window, and the next chance won’t come until 2027.

In the case of XRP, the importance is fixed: The Clarity Act would establish its own set of products into law, a legal framework around which institutional managers, banks, and ETF providers would have to feel free to build products around. Standard Chartered’s goal of $8 XRP, according to the full Senate passage plus $4 billion to $8 billion in new ETF inflows, would not be a fantasy without this.

So things are not looking good for Clarity, or XRP.

XRP price: What the charts say

XRP is trading at $1.0641 with a volume of $65 billion on Binance, with a 24-hour low of $1.0450 and a high of $1.0679. The token peaked at around $3.40 during 2025 and has been on a positive trajectory since then, cutting lower and lower prices for months.

The Average Directional Index, or ADX, sits at 11.2—one of the weakest readings XRP has posted all summer. ADX measures the strength of a trend on a scale of 0-100, regardless of whether this is up or down. Think of it as a test of how sensitive the market is: anything below 25 indicates no definite trend is taking place, and readings below 20 are associated with unbounded markets where false breakouts and trailing stops are common.

As Decrypt was known on July 16when the reading was 13.3, XRP has been exactly in line with this volatile limbo for most of July. One signal is a bit tight: the indicator is starting to cycle from DI- (bearish authority) to DI+ (bullish pressure house). So there is hopium in there somewhere.

The Exponential Moving Averages, or EMAs—which adjust the price of a stock over time to reveal trends—confirm the big picture: the 50-day EMA is trading below the 200-day EMA in a trading pattern called a death cross. When the short-term average is below the long-term, it means that the average trend is still downward, regardless of the short-term jump. This reconciliation has been going on since XRP dropped from $3.65 all time, and there is no sign that the two averages will start to change.

The Relative Strength Index, or RSI, is 40.9. RSI is a strength indicator on a scale of 0-100: above 70 is expensive, below 30 is oversold. At 40.9, XRP is in bearish territory—below the 50 neutral line—but not at the extreme levels that attract bullish buyers looking for the bottom.

On the Fibonacci side (natural supports and resistances that appear during the trend) the current leg is from $1.1646 to $1.0450. Below that price, the next Fib support is $1.0125, followed by $0.9711.

What happens next

Two events will define the next direction of XRP. If the Fed Chair Warsh holds and shows its tone – or thoughts on the cut of September – the crypto will get a break, and XRP can test the Fibonacci golden section between $ 1.10 and $ 1.12. If the statement is considered hawkish or a negative vote is seen, the sale has the opportunity to go above $ 1.01 and, below it, the $ 0.97 zone.

The Clarity Act is the biggest, long-term reform. The Senate’s August recess will begin on August 7. If a floor vote doesn’t happen by then, XRP’s main support will evaporate until late 2026—and possibly beyond, depending on the upcoming midterm election calendar.

Technical planning advocates patience and not haste. This volatile market – ADX at 11.2, Squeeze full of power, death cross is unstable – may be under pressure for longer than most traders expect before it resolves. Overwhelming signals can lead to short-term declines but without a major catalyst or legal surprises, these breakouts are more of a selling opportunity than a new start.