XRP hovered around $1.42 on Saturday, reflecting a 2.15% decline over the past 24 hours, as traders weighed the implications of advancing U.S. crypto legislation and fresh institutional inflows. The digital asset's market capitalization stood at approximately $87.6 billion, with daily trading volumes near $1.82 billion, according to CoinMarketCap.
The price action comes after the Senate Banking Committee voted 15-9 on May 14 to advance the CLARITY Act, a bill aimed at clarifying whether digital tokens are classified as securities or commodities. The legislation now moves to the full Senate, where its fate remains uncertain. Chairman Tim Scott hailed the vote as bringing digital assets "into the sunlight," while minority staff raised concerns about gaps in addressing illicit finance, particularly in decentralized finance (DeFi) protocols.
Despite the legislative progress, risk-off sentiment weighed on the broader crypto market. Bitcoin slipped 1.46% to roughly $78,266, while ether dropped 2.25% to around $2,178. The decline in XRP mirrored the weakness across major cryptocurrencies, as traders focused on macroeconomic headwinds and the Federal Reserve's interest rate stance.
The $1.50 price level has emerged as a critical resistance point for XRP, with traders closely watching whether it can break through. The token has gained only 0.1% over the past week, highlighting the lack of bullish momentum despite the policy catalyst. Sean Farrell, head of digital assets strategy at Fundstrat, noted he was "not rushing to make major adjustments" following the legislative update, pointing to potential sell-the-news dynamics and stretched valuations in certain market segments.
In a positive sign for institutional demand, U.S.-listed spot XRP exchange-traded funds (ETFs) recorded $25.8 million in net inflows on Monday, the largest single-day haul since January 5. These funds, which hold XRP directly and trade like stocks, have been a key driver of recent interest. Broader digital asset investment products also saw strong inflows, with CoinShares reporting $857.9 million in total inflows for the week ending May 8, of which $706.1 million went into bitcoin products. XRP-specific funds attracted $39.6 million, while Solana and ether also saw inflows.
Crypto executives hailed the Senate committee vote as a milestone after years of lobbying. "It's taken years of work to get to this point," Miller Whitehouse-Levine, CEO of the Solana Policy Institute, told Reuters. However, the bill may still face revisions or delays in the full Senate, as opposition lawmakers push for stronger anti-money laundering provisions, particularly targeting DeFi platforms that operate without intermediaries.
Looking ahead, XRP traders are monitoring two key factors: whether the CLARITY Act maintains bipartisan support ahead of the Senate vote, and whether sustained ETF demand can propel the token toward the $1.50 resistance level. With bitcoin languishing below $80,000 and ongoing rate concerns weighing on risk assets, the broader market remains cautious. XRP has benefited from fresh institutional flows and a clearer regulatory narrative, but bulls have yet to seize decisive control.
