Is it Time to Exit XRP as CLARITY Act Passage Odds Hit a New Low?

XRP price has dropped by 2.4% today, April 23, after the odds of the CLARITY Act passing Congress plunged to new lows. This bill has been ranked among the top bullish catalysts for US-made coins such as XRP, because regulatory clarity could draw institutional interest to these tokens. Hence, with Senators split on the vote amid heavy bank lobbying against the bill, is it time to exit XRP? Let’s explore.

CLARITY Act Passage Odds Plunge as Prices Tumble

As reported by CoinGape, the CLARITY Act’s passage odds dropped to 38% recently on the Polymarket predictions platform. A similar downturn was also seen on Kalshi, where there is only a 14% chance that the bill will be passed before July. These declining odds coincide with a dip in the price of XRP and other tokens.

Galaxy Digital’s Head of Research, Alex Thorn, also said that there is a 50-50 chance that the CLARITY Act is signed into law this year.

Meanwhile, several US senators have pushed to move the CLARITY Act markup to May. The Chair of the US Senate Banking Committee, Tim Scott, is among those calling for this delay. In a recent statement, Scott urged Congress to look at May as the next markup timeline.

Calls by top voices in the Trump administration to have this bill passed as soon as possible are also not bearing fruit. On April 22, Treasury Secretary Scott Bessent testified before the US Congress and stated that it was important for the Senate to pass crypto market laws for the US to emerge as a leader in the digital assets world.

Bessent’s bullish speech failed to spark an XRP price rally. In fact, the token had dropped with an intraday loss of 2.32% to trade at $1.41 at press time. This could signal that some traders are exiting the market as this bullish catalyst fails to play out.

XRP Price Fails to Break $1.47 Resistance as Buyers Hesitate

The main resistance level for the XRP price currently stands at $1.47. It last tested this resistance on April 17, following an 8% rally within three days. However, it appears that buyers have been taking profits whenever this level is reached, and this has driven a drop to today’s price of $1.41.

The only way that XRP can break this resistance is if there is a strong catalyst. The CLARITY Act was one such catalyst, and with passage odds falling, this breakout now seems unlikely to happen soon.

Moreover, buyers appear to be hesitating to enter the market whenever the price approaches $1.47 due to fear of rejection. The RSI confirms this by tipping south on the daily chart. This indicator has also crossed below the signal line and dropped to 53, signalling that sellers are looking to outpace buyers despite the recent spike in XRP exchange outflows.

Nevertheless, it is important to note that a recent XRP price analysis by CoinGape noted that it is squeezing within a symmetrical triangle pattern. If it can break resistance at $1.47, the next bullish leg will push it to $2.

Therefore, before confirming a bearish reversal, traders should watch the support level at $1.31. As long as XRP is trading above this support level, there is a high chance that it can break out towards $2. A drop below $1.31 will confirm a downward trend.

Is It Time to Exit XRP?

The CLARITY Act passage odds have dropped, but this does not necessarily mean that the bill is dead. As aforementioned, a CLARITY Act markup may happen in May, which will be a step closer to the bill’s passing.

Moreover, while CLARITY may be the biggest catalyst that pushes XRP price higher, other bullish developments within the Ripple ecosystem could support gains. Recently, SoFi Bank opened XRP deposits to more than 13 million customers.

At the same time, the Ripple ecosystem is expanding with the recent move to have XRP DeFi lending protocols. This could further boost utility for XRP, translating into price gains.

Therefore, while the CLARITY Act passage odds are falling, it might still not be time to exit the XRP market. This is because the broader market sentiment is shifting in favor of bullish traders, and other positive developments are happening within the Ripple ecosystem that could drive gains.