Will a new XRP bull market open if the CLARITY Act is finally passed?

▲ Ripple (XRP) ©

XRP (Ripple) is once again raising expectations of breaking through $1.50, driven by the progress of the CLARITY Act, a U.S. cryptocurrency market structure bill, in the Senate. Analysts suggest that with regulatory clarity and large-scale ETF fund inflows coinciding, the possibility of XRP being re-evaluated as an institutional-grade asset has increased.

According to investment specialized media FX Leaders on May 21 (local time), XRP is currently trading around $1.3676, showing a 0.39% increase. The media analyzed that the recent price movement is forming a typical Bull Flag pattern within a descending channel, and there is a possibility that it could lead to a major breakout if regulatory news from Washington intensifies.

The biggest catalyst cited was the passage of the CLARITY Act, a U.S. cryptocurrency market structure bill, by the Senate Banking Committee. The bill passed with bipartisan support, 15 to 9, and aims to establish federal standards for distinguishing digital assets as securities or commodities. The media evaluated that this bill is highly likely to reduce regulatory uncertainty for XRP and enhance institutional investor accessibility.

The inflow of funds into U.S. spot XRP ETFs is also boosting market expectations. According to the media, the cumulative net inflow into U.S. spot XRP ETFs has now exceeded $1.4 billion. In addition, with the expanded use of Ripple's RLUSD stablecoin and the activation of Real World Asset (RWA) tokenization projects, the usage of the XRP Ledger network is also steadily increasing, the media explained.

Technically, analysis suggests that XRP is forming a strong bull flag pattern on the 2-hour chart. The media explained that a strong hammer candle was recently formed at the moving average support level between $1.362 and $1.370, and even during the correction process after the previous high of $1.5498, it stably maintained the 0.236-0.382 Fibonacci retracement zone. The Relative Strength Index (RSI) remains in the neutral zone at 48-55, but hidden bullish divergence signals are appearing, indicating weakening selling pressure.

Upper resistance levels were presented as $1.3837, $1.4050, and the moving average zone of $1.4282-$1.4550. Conversely, lower support levels were analyzed as $1.3620, $1.3531, and the key demand zone of $1.3318. The media assessed that XRP is currently in the process of transitioning from an asset primarily focused on speculative individual investors to an institutional-grade digital asset, and it is highly likely that the full Senate vote scheduled before the end of the year will be a key event for future price re-evaluation.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*