Cryptocurrency Market Structure Bill Vote Imminent...XRP, $1.55 Scenario Emerges

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Ahead of the U.S. Senate Banking Committee's discussion on cryptocurrency legislation on May 14, XRP has entered a period of short-term volatility, but expectations of regulatory clarity and ETF inflows are stimulating buying sentiment again.

CoinGape reported on May 12 (local time) that XRP was under pressure ahead of a major U.S. regulatory decision. Bitcoin (BTC) slightly dropped below $81,000 after some consolidation, and Ethereum (ETH) remained below $2,300. The total cryptocurrency market capitalization decreased by 0.65% over 24 hours to $2.69 trillion, and Middle East tensions were cited as a factor that dampened investor sentiment in global financial markets and digital asset markets ahead of May 14.

The U.S. Senate Banking Committee is scheduled to discuss the U.S. cryptocurrency market structure bill at 10:30 AM on May 14 in Washington D.C. Senator Tim Scott stated that proposals addressing the digital asset market structure would be discussed at the meeting. The draft bill aims to clarify the classification of certain tokens as securities or commodities and define the roles of regulatory authorities for digital assets. It also includes the controversial issue of stablecoins between banks and cryptocurrency companies, and contains a provision prohibiting the payment of interest on unused dollar-denominated customer holdings.

CoinGape reported that investor confidence improved and optimism spread among digital asset traders after the Senate Banking Committee released the full draft document ahead of this week's markup. The market believes that XRP could benefit if regulatory clarity is enhanced. Ripple is considered a representative project closely linked to regulatory issues due to its legal dispute with the U.S. Securities and Exchange Commission (SEC). Analysts believe that the May 14 meeting could influence the short-term direction of the cryptocurrency market and are monitoring whether the bill passes Congress in the coming weeks.

Technical indicators point to a neutral trend. XRP traded at $1.44 in recent transactions, declining by approximately 0.22% on the 4-hour chart. The Relative Strength Index (RSI) hovered around 51, indicating a balance between buyers and sellers. The Chaikin Money Flow (CMF) remained in positive territory at 0.13, showing continued positive capital inflow for some time. If buying pressure regains dominance, XRP could test the $1.47 resistance, and a breakthrough of that level could lead to the $1.50 interest zone. Should strong upward momentum take hold, $1.55 has been suggested as the next target.

Conversely, if XRP falls below the $1.42 support level, it could be exposed to further downside. In this scenario, the next downside targets are suggested to be the $1.40 and $1.35 levels. On May 11, XRP ETFs saw an inflow of $25.8 million, marking the largest daily inflow since January. This inflow was led by Bitwise, Franklin, and Grayscale products. Cumulative net inflows for May increased to $60 million, and the total cumulative inflows for XRP ETF products reached $1.35 billion. Of this, the amount added since January 1, 2025, is just under $184 million.

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