XRP Price Drops Despite EU License News: Is the Clarity Act to Blame?

XRP price is trading near $1.0457 as of this writing, down almost 2% on the day. The token is sitting right at a level that traders say could decide its next big move.

Market watchers are now split. Some point to a bearish chart pattern. Others see a setup that has led to sharp pumps before.

At the same time, the fate of the Clarity Act in the U.S. Senate is adding fresh uncertainty to the XRP price outlook.

What Is the XRP Price Today?

XRP is changing hands around $1.0457, down 1.96% on the day. The token's market cap sits at $65.38 billion, with a circulating supply of 62.53 billion coins out of a 100 billion max supply.

Futures volume over the past 24 hours reached $1.98 billion, while spot volume came in near $316.75 million. Open interest across derivatives markets stands at $2.31 billion.

Why Is XRP Price Down Today?

Two forces appear to be weighing on price right now.

First, $XRP is testing the lower edge of a symmetrical triangle on the daily chart. 

Second, delays around the Clarity Act in Washington are keeping traders cautious.

The daily candle close matters here. A confirmed close below triangle support and under $1.04 would point to a bearish breakdown, with downside targets near $1.00, $0.97, and $0.93 if selling continues.

If buyers push price back inside the triangle before the daily close, the drop could turn out to be a false breakout instead, keeping XRP range-bound a while longer.

Liquidation data backs up the shaky mood. Over the past 24 hours, roughly $6.12 million in positions were wiped out, and $6.03 million of that came from long traders caught off guard by the drop.

Shorter windows show the same lean: $4.66 million liquidated over 12 hours ($4.63 million long) and $4.22 million over 4 hours ($4.22 million long).

Are Traders Still Leaning Long on XRP?

Despite the losses, positioning data shows most active traders are still leaning bullish, even as spot price slides. The 24-hour long/short ratio sits at 0.8965, but account-level data tells a different story.

On Binance, the XRP/USDT long/short ratio by accounts stands at 2.8685, meaning nearly three times as many accounts are long as short. OKX shows an even higher tilt, at 3.45.

Among Binance's top traders specifically, the account-based ratio is 3.4484, though the position-based ratio is a narrower 1.5217.

That gap between crowded long positioning and heavy long liquidations is often a sign that leveraged bulls got caught leaning the wrong way during the dip, which can add extra downside pressure if the triangle support gives way.

What Is the Key Level Traders Are Watching?

According to analyst Ali Charts, everything for $XRP comes down to the $1.06 mark. Price is currently trading below that level.

If XRP holds $1.06, bulls could aim for $1.35 and then $1.64. If it loses that level, the path could open toward $0.80 and potentially $0.62, based on the UTXO Realized Price Distribution data from Glassnode.

Is the Clarity Act Going to Pass in 2026?

The Digital Asset Market Clarity Act, the crypto market structure bill many in the industry are counting on, is running out of time in the Senate.

Wednesday's cloture filing did not include the Clarity Act, meaning the standard Senate process no longer allows for a Friday vote. The only paths left are unanimous consent to fast-track the bill, or extending the session into the weekend.

Senator Cynthia Lummis has said she expects the Senate to stay past Friday, though that outcome remains uncertain.

On Polymarket, bettors currently put just an 18% chance on the Clarity Act being signed into law in 2026, down from higher odds a few weeks ago.

Parts of the bill are still being worked out, including provisions on illicit finance, agriculture, and an ethics clause meant to stop senior officials from profiting off crypto.

The White House is reportedly reviewing a related proposal from Senators Thom Tillis and Ruben Gallego.

Outside of crypto, the Senate is also juggling the Attorney General nomination, a government funding bill, a Russia sanctions bill, and a college sports bill, all competing for floor time before the summer recess.

What Did Ripple Announce About Its EU License?

Away from Washington, Ripple has kept expanding in Europe. The company now holds a full MiCA Crypto Asset Service Provider license from Luxembourg's CSSF, along with an EU Electronic Money Institution license.

Ripple says the EMI license lets institutions across all 30 EEA nations collect, exchange, and pay out through Ripple Payments under a single regulated setup.

Ripple's leadership has also argued that regulatory clarity builds institutional trust, and the CEO has said XRP could eventually pass Ethereum in market cap to become the second-largest crypto asset behind Bitcoin.

Are XRP Whales Buying or Selling?

On-chain data flagged by Xaif Crypto shows XRP exchange wallets on Coinbase and ByBit have flipped into net withdrawal territory while price sat near $1.07.

A similar pattern showed up right before the May and June rallies this year, though past patterns do not guarantee a repeat.

How Are XRP ETF Flows Trending?

The pattern raises a question rather than answering one. It is too early to say if August is the start of a new outflow streak or just a short pause before flows turn positive again.

XRP Price Prediction: Key Levels to Watch

Some longer-term chart watchers, including the analyst known as Chart Nerd, point to a multi-year triangle retest pattern similar to the one XRP formed before its 2017 rally.

Under that fractal-based view, a retest and breakout could eventually open the door to Fibonacci extension targets well above the current price over the coming years. This remains a longer-term, speculative scenario and not a short-term forecast.

Final Thoughts

XRP price is caught between a short-term technical fight at $1.06 and a longer-term regulatory story tied to the Clarity Act and Ripple's EU expansion. Neither outcome is settled yet.

Traders watching XRP news today will likely keep an eye on the daily candle close, Senate floor activity before recess, and whether ETF outflows continue into next week.

Disclaimer: This article is for informational purposes only and does not constitute financial, investment, or trading advice. Cryptocurrency prices are highly volatile and can result in significant losses. Always do your own research and consult a licensed financial advisor before making any investment decisions.