XRP Price Outlook After the CLARITY Act’s New Stablecoin Rules

XRP price is attempting to stabilize after sliding to $1.31 on Saturday amid broader crypto weakness. The XRP price has struggled through a multi-month decline since peaking near $2.40 in January. 

Recent trading shows XRP holding near key technical support as investors weigh macro and regulatory developments.

The wider crypto market was under the pressure again after a rapid change in Federal Reserve expectations. The release of strongly March Non-Farm Payrolls data on April 4, dimmed the prospects of rate cuts in the near future. 

The March Consumer Price Index report that will be released on April 10 is also of interest to investors. The inflation data might also affect the anticipations concerning the monetary policy and risk appetite. 

Bitcoin price was trading around the $68,000 mark, and Ethereum was around the $2,000 mark after the pullback.

Despite market turbulence, regulatory headlines are reshaping sentiment around XRP and Ripple’s stablecoin strategy.

CLARITY Act and Stablecoin Rules

The latest draft of the CLARITY Act proposes banning yield on passive stablecoin holdings. The measure would prevent platforms from offering rewards simply for holding stablecoins. 

That proposal effectively closes the model that allowed Coinbase to offer roughly 4% on USDC balances. Traditional banks, by comparison, offered minimal interest on deposits

The RLUSD by Ripple has taken another route. The stablecoin has attained a market capitalization of over 1.25 billion in 15 months. Its growth has been on cross-border work, institutional settlement and collateral usage. Yield incentives have not been provided to attract holders by RLUSD.

The application by Ripple to obtain an OCC bank charter can also be a regulatory benefit. Circle is also still awaiting such approvals as policymakers discuss the regulation of stablecoins. With the yield ban in place, utility-based stablecoins rather than reward-based ones may be on the rise as a result of the CLARITY Act.

In the case of XRP, the regulatory transparency can affect the long-term trust. The short term price movement is still related to macro data and general market sentiment.

XRP Faces Rising Volatility After Sharp Liquidity Decline

XRP price is facing renewed pressure as its liquidity index on Binance drops to record lows, according to CryptoQuant data. The 30-day liquidity index slid to 0.062, while turnover declined to about $4.46 billion. 

Reduced liquidity implies reduced turnout and increases volatility exposures. Since March 18, XRP has been moving in a downward channel and the resistance is around 1.35.

Is XRP Price Preparing for a Breakout or Further Decline?

At the time of writing, the XRP price trades near $1.31 after a mild pullback on the four-hour chart. The MACD indicator implies a weak momentum, as the signal lines are below the zero mark.

This implies that bearish pressure is still dominant in spite of slight consolidation periods.

There is a decreased selling strength indicated by histogram bars, indicating a potential short-term stagnation.

At the same time, the RSI is around 42 that shows neutral with a slight bearish environment. The indicator is also below the midpoint indicating that buyers are not strongly convinced.

Any upward movement of over 50 may indicate a positive growth in the short run recovery.

In case of bulls regaining the ground at the level of $1.38, the next resistance that will be targeted by XRP is the level of $1.45. The break above 1.45 could lead to the break into the 1.50 area. But the inability to keep at $1.30 might lead to further fall to 1.25 or even below that.