XRP struggles to gain momentum as Bitcoin stabilizes above $65,000, with legislative delays impacting its outlook.
Overview
- Bitcoin has surged past $65,000, while Ethereum rose nearly 6% this week, fueled by declining inflation rates. Most top cryptocurrencies experienced minor declines, with Ondo standing out with a 14% increase.
- XRP is currently priced at $1.10, down 0.54%, and shows a concerning indicator score of -42%, alongside a confirmed bearish trend on its daily chart.
- The Senate vote on the Clarity Act, anticipated to be pivotal for XRP, has been delayed beyond July 4, now likely to occur in late July or August.
Thursday marked a pause in the cryptocurrency market following a robust rise earlier in the week, driven by a significant drop in the Consumer Price Index for June, which fell 0.4%, the largest monthly decrease since April 2020. This decline has led to a dramatic reduction in expectations for a Federal Reserve interest rate hike in July.
Wall Street also saw positive movement, with major banks reporting better-than-expected Q2 earnings. Bitcoin recently broke through its $64,000 resistance, while Ethereum surged to approximately $1,900 after a nearly 6% daily gain.
Despite the general market uptrend, XRP's performance has been disappointing. Opening at $1.11257, it peaked at $1.11722 but currently trades at $1.10650, reflecting a 0.54% dip. Unlike other cryptocurrencies, XRP has not capitalized on the favorable market conditions.
The token has struggled to surpass resistance levels set during the previous Crypto Winter, and the XRP community appears less optimistic compared to other altcoins amid the current market slowdown.
As investors cautiously re-enter the crypto market, Bitcoin tends to attract the most initial investment, followed by Ethereum, which has historically led recoveries in the sector.
Currently, the Altcoin Season Index is at 45, indicating that Bitcoin and Ethereum remain dominant, with altcoins still not receiving significant capital inflows. Earlier in July, during a $602 million liquidation event that pushed Bitcoin back toward $62,000, XRP managed only a 3% gain, while Ethereum and Solana saw much higher increases.
The legislative landscape also impacts XRP, as the delayed Senate vote on the Clarity Act could potentially classify XRP as a commodity, opening the door for institutional ETF investments. Without a clear timeline for this vote, XRP's prospects hinge solely on broader market sentiment and struggle against Ethereum's gains.
XRP's Price Dynamics
Currently trading around $1.10, XRP's market capitalization stands at approximately $69 billion. The token is testing a weak support level after declining from $1.18 to $1.05, placing it at a critical point. It must either maintain its position to aim for $1.13 or risk falling below $1.08, which could lead to a further drop toward $1.06 and a crucial support level at $1.02.
The Average Directional Index (ADX) is at 13.3, indicating a lack of strong trends, with readings below 20 suggesting indecisive market conditions. While there are signs of a potential shift toward bullish momentum, significant movement is needed for a meaningful change.
The Exponential Moving Averages (EMAs) reveal a bearish trend, with the 50-day average below the 200-day average, indicating a death cross. This pattern has persisted since XRP's peak of $3.65 in July 2025. While Bitcoin faces its own challenges, XRP shows no signs of reversing this trend soon.
The Relative Strength Index (RSI) is at 48.5, reflecting a neutral momentum, while the Squeeze Momentum indicator indicates slight positive momentum. Chart analysis suggests XRP may be approaching a price compression point, with its next move likely influenced by Bitcoin's stability above $64,000 and updates on the Clarity Act's Senate schedule.
