XRP Plunges 12.2% in Hours Amid US Senate Clarity Bill Setback

XRP fell around 12.2% within hours due to the setback in processing the US Senate's Clarity Act, according to blockchain media U.Today.

The US Senate failed to reach the required 60 votes for cloture on the bill, with a vote of 49-50. The market reacted negatively across the cryptocurrency industry as XRP dropped from around $1.45 to approximately $1.27 before rebounding slightly to near $1.29. Trading volume surged during the decline, suggesting concentrated selling rather than volatility from low liquidity.

Brad Gallinghouse, Ripple's CEO, called the outcome 'painful' but emphasized that the industry's growth isn't dependent on a single bill. Ripple's Chief Legal Officer, Stuart Alderotti, also stated the vote wouldn't affect XRP's current legal status in the U.S.

Price action now tests key technical support levels. The $1.35 range, which supported sideways movement since September and coincided with long-term moving averages on daily charts, has already broken. This level is now a resistance zone for potential rebounds. Current focus is on the $1.25-$1.29 range, where multiple rising moving averages are clustered. Buying interest emerged near the intraday low of $1.27, preventing further drops toward $1.20.

For a short-term rebound to gain traction, maintaining support at $1.25 is critical. Holding this level could lead to recovery toward $1.30 as an initial stabilization signal. The next target would be the $1.34-$1.36 range, necessary for reversing the technical damage from the recent drop. Further targets include $1.40 and $1.45.

If the $1.25 support fails, downside pressure could intensify, pushing XRP below major moving averages toward $1.20-$1.22, potentially extending to $1.15. Market focus remains on whether the support level holds rather than immediate rebound attempts after initial shock.