XRP Struggles Below $1.50 as Capitol Hill Developments Loom

XRP remains capped below the significant $1.50 resistance level, trading at $1.47 with a slight increase of 0.03% over the last 24 hours. Despite the growing institutional interest and adoption of exchange-traded funds (ETFs), the token has been struggling to gain momentum. Recent inflows indicate strong underlying demand, but the market is watching closely as regulatory developments evolve.

Institutional Demand Fuels XRP’s Potential

The robust demand for ETFs plays a crucial role in shaping XRP’s medium-term outlook. Since the launch of XRP-spot ETFs in the United States, the sector has attracted total net inflows of approximately $1.23 billion. Notably, the Grayscale XRP ETF (GXRP) has garnered $131.46 million in inflows since its debut in November 2025, reflecting increasing institutional confidence in the asset.

Ripple’s growth, particularly its acquisition of a US banking license, has positively impacted the token’s real-world applications. This development is likely contributing to constructive price expectations for XRP as it navigates the evolving financial landscape.

Regulatory Developments and Market Dynamics

The ongoing discussions surrounding the US Market Structure Bill have heightened XRP’s sensitivity to regulatory changes. As the Senate reviews this pivotal legislation, past legislative momentum has previously led to significant price fluctuations, including a notable 15% rally in a single day. Legislative delays earlier this year caused XRP’s value to decline sharply, dropping from a high of $2.4151 in January to approximately $1.1227 by early February.

Analysts believe that a successful Senate vote and subsequent passage of the bill could propel XRP’s price towards $2.50 within the next four to eight weeks. However, ongoing discussions at the White House regarding stablecoin yields contribute to market uncertainty, leaving investors cautious.

The Federal Reserve’s monetary policy and expectations regarding interest rates also influence liquidity conditions and risk appetite among investors. Additionally, the Bank of Japan’s evolving approach to its neutral rate may impact global capital movements, particularly through its effects on yen carry trade operations.

Strong economic data from the United States, coupled with ETF outflows and potential legislative delays, adds downward pressure on XRP. This raises the likelihood that the token may test the psychological support level of $1.00.

XRP’s technical indicators present a mixed picture. Recently, the token broke above the lower trendline boundary of a falling wedge pattern but saw a slight decline the following day. Currently, it appears to have stabilized around this trendline. Should XRP close below this boundary, further declines could extend toward the weekly support level of $1.30.

While the Relative Strength Index (RSI) indicates building bearish pressure, the Moving Average Convergence Divergence (MACD) suggests underlying bullish momentum. If the lower trendline holds as support, XRP could recover towards the 50-day Exponential Moving Average (EMA) at $1.71. Resistance levels remain at $1.50 and $2.00. A sustained move above $1.50 could signal a potential trend reversal in the near term.

As XRP navigates this complex environment, investors will be closely monitoring both market trends and regulatory developments, assessing their impact on the token’s future trajectory.