XRP, the last hurdle to end the sideways hell... Rechallenging $2 on the back of US bill

▲ XRP/AI generated image

As the US cryptocurrency market structure bill passed the Senate Banking Committee, expectations are growing that XRP could aim to break above $2 again. Regulatory uncertainty has been a key constraint for XRP, and analysis suggests that the bill's progress is acting as a catalyst for both the Ripple ecosystem and XRP price charts.

According to U.Today on May 16 (local time), the US Senate Banking Committee's approval of the US cryptocurrency market structure bill has alleviated some of the major limiting factors surrounding XRP. The bill awaits final approval from the full Senate and is explained to clarify not only XRP's legal status but also the legal basis for the RLUSD stablecoin.

The new bill contains provisions that clearly distinguish rules for issuing dollar-pegged tokens. U.Today reported that while passive income provision for dollar-pegged tokens is likely to be prohibited, trading incentives could legitimately remain. This is assessed to provide Ripple with a legal foundation to massively expand RLUSD adoption in cross-border payment areas, where XRP has traditionally served as a bridge asset.

Previously, major banks' utilization of RLUSD was limited due to high regulatory risks. In this context, Ripple's collaboration with JPMorgan and Mastercard on a pilot project for tokenized US Treasury settlement on the XRP Ledger was also cited as a factor stimulating investor optimism.

Signs of change are also appearing in the price charts. XRP is currently clinging close to the psychological resistance level of $1.5 after several months of defensive range, and is approaching a key point to break the middle line of the Bollinger Bands on a weekly timeframe. U.Today analyzed that if a closing price above this level is confirmed, the long-term sideways structure could be resolved, opening a direct path towards the upper Bollinger Band at $2.03.

This week, XRP briefly rose to $1.54, physically breaking the middle line of the Bollinger Bands, but failed to secure a weekly close at that level, retreating to the $1.45 range. U.Today believes that if a break above $1.50 is confirmed, XRP could enter the upper Bollinger Band range, with $2.03 becoming the primary target. Conversely, the key area for buyers to defend was presented as the lower boundary at $1.03.

The next few days are considered a watershed moment that will determine whether XRP will fall back from $1.5 into a tedious sideways range, or confirm the official start of a rally towards $2 and return to an overall bullish trend. As the US cryptocurrency market structure bill emerges as a catalyst to reduce regulatory risk, XRP's price is expected to determine its next direction based on whether a break above $1.50 is confirmed.

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