XRP News Today: Price Prediction After Clarity Act Fails; Eyes on Fed

XRP Price Forecast: Clarity Act Fails, Fed Rate Decision Now in Focus

XRP price took a hard hit today after the Clarity Act failed to pass in the U.S. Senate. The XRP price prediction outlook has turned cautious as traders now wait for the Fed rate decision, due later today.

At the time of writing, XRP is trading at $1.298, down nearly 8% in the past 24 hours. The drop came right after the Senate vote result, and it has pulled XRP price below a key support zone today.

In the biggest XRP news today, this article covers the Clarity Act vote, the Fed rate decision, XRP derivatives data, and what could happen next to XRP price.

Why Did XRP Price Crash Today?

The U.S. Senate failed to advance the Clarity Act (H.R. 3633) after the cloture vote fell short of the 60 votes needed to move forward. The bill got only 49 votes in favor.

This bill was meant to set clear rules for digital assets in the U.S. Its failure hit market confidence hard.

Right after the news broke, XRP price dipped by around 10%, sliding toward the $1.27 zone. Bitcoin and Ethereum also faced fresh selling pressure during this move.

What Did Brad Garlinghouse Say About the Clarity Act Failing?

Ripple CEO Brad Garlinghouse shared his reaction on social media soon after the vote. He said the loss "stings" and that the Ripple team, along with most of the industry, gave everything to get the bill passed.

He called this a missed opportunity, one bigger than just Ripple, but for the whole industry and for U.S. consumers. He also said the vote's failure hurts America's position as a leader in the future of finance.

Garlinghouse added that a review of what went wrong needs to happen, and he pointed to political division as a reason the bill did not pass.

Still, he stayed hopeful. He noted that the SEC under Chair Atkins and the CFTC under Chair Selig will keep working on rules to fill the gap left by Congress. He also said Ripple's business remains strong, with real demand across traditional finance and crypto.

Fed Rate Decision Today: What Traders Are Watching

All eyes are now on the Federal Reserve. The FOMC rate decision lands today at 2:00 PM ET, followed by a press conference at 2:30 PM ET.

Inflation staying well above the Fed's 2% long-run target is a big part of why this meeting matters so much. That pressure has pushed the market's outlook toward a rate hike this week, with the CME FedWatch tool showing a 92.5% chance of a 25-basis-point increase, against just a 7.5% chance rates stay where they are.

The Fed's favorite inflation gauge, the personal consumption expenditures (PCE) index, rose 3.7% annually in July. Core PCE, which strips out food and energy, was up 3.3%. Another key measure, the consumer price index (CPI), climbed 3.4% annually in August, with core CPI at 2.4%.

Numbers like these are exactly why policymakers are leaning hawkish right now, even with markets hoping for relief.

Here's the simple way traders are reading it:

• A hike would likely push markets, including XRP, lower.

• A hold could bring some relief and a possible rally.

• A cut would likely trigger a stronger rally across crypto.

Given the current odds favor a hold, a big surprise cut looks unlikely, but markets can move fast once the announcement drops.

XRP Price Today: Derivatives Data Breakdown

XRP derivatives data shows a mixed and busy market right now.

Trading volume jumped nearly 40%, showing traders are active despite the drop. Open interest fell slightly, which means some positions closed out during the sell-off.

The long/short ratio sits just under 1, pointing to a slight lean toward short bets overall. That said, exchanges like Binance and OKX show more long accounts, so views are split depending on where you look.

Liquidations tell a clearer story. Long traders took the bulk of the pain, losing close to $29.14M, compared to just $5.66M for shorts. This shows leveraged long positions got squeezed hard during the drop.

Separately, SoSoValue data shows there was no trading activity in the XRP Spot ETF today.

XRP Price Prediction: Key Levels To Watch

XRP is now testing its 20-week EMA, a level chart watchers see as important. A close below this line could open the door toward the $1.00 mark.

After losing the $1.34 support, XRP price quickly slid toward $1.26. This also weakened the earlier bullish setup that was aiming for the $1.70 to $1.78 zone.

Here is how traders are mapping out the next moves:

• $1.24 to $1.26 – First support level bulls need to hold.

• $1.14 to $1.10 – Next target if $1.24 breaks down.

• $1.00 – Psychological level that comes into play below $1.10.

• $1.34 – Level XRP needs to reclaim to prove this drop was a fakeout.

One thing worth noting: the 1-hour RSI has dropped near 21, which counts as deeply oversold. That means a short bounce would not be a big surprise, even if the bigger trend stays weak.

A bounce alone would not be enough to call this bullish again. Traders following this XRP price prediction say $1.34 remains the level to watch before feeling confident about upside again.

What's Next For XRP Price?

XRP price today is caught between two big events, a failed Clarity Act vote and an upcoming Fed decision. Both are shaping short-term sentiment.

If the Fed holds rates steady as expected, some of today's losses could ease. But if XRP price today fails to hold the $1.24 to $1.26 zone, a move toward $1.10 and then $1.00 stays on the table.

For now, traders seem to be watching support levels more closely than any quick return to higher prices. The next few hours around the Fed announcement could decide which way XRP price prediction models lean next.

Disclaimer

This article is for informational purposes only and does not constitute financial, investment, or trading advice. Cryptocurrency markets are highly volatile, and prices can change rapidly. Always do your own research and consult a licensed financial advisor before making any investment decisions. Past performance is not indicative of future results.