XRP traded at $1.33 on Tuesday, May 26, 2026, erasing gains from the CLARITY Act rally despite the Senate Banking Committee advancing the Digital Asset Market Clarity Act on May 14. The token has returned to consolidation lows between $1.26 and $1.30, closing weaker on most sessions following the regulatory milestone that should have repriced the asset higher. While trader Ninedex published a $20 stretch target, the current weakness reflects a broader crypto liquidity crisis rather than fundamental concerns. According to Paul Howard at Wincent, sentiment has deteriorated since October 2025, creating an environment where even positive regulatory developments cannot sustain price momentum. Spot XRP ETF inflows have exceeded $1.3 billion since November 2025, yet thin order books at major venues cannot absorb headline-driven flows. The bill still requires 60 Senate floor votes to pass into law.
FXnCO Insight
Traders should treat regulatory headlines as short-term volatility catalysts rather than regime-changing events until crypto market liquidity improves substantially.
Source: Finance Magnates