Will the Clarity Act Be Enough to Propel XRP to a New High?
The crypto market is witnessing a striking divergence. On one hand, Hyperliquid’s HYPE token is dominating capital flows with impressive resilience, trading in a price zone of $55.42 – $56.16. On the other hand, XRP remains stuck in a correction phase, experiencing a flash crash this Saturday morning down to $1.30.
The recent passage of the Clarity Act was supposed to act as a major catalyst to trigger a bull run for the Ripple token. However, the market reality is quite different. XRP’s heavy tokenomics and strong technical resistance levels are seriously complicating the formation of a breakout following the legislation.
Investors are massively turning toward more volatile assets, leaving XRP facing a wall. To hope for a surge, the asset will absolutely need to attract new trading volumes and reverse the currently bearish sentiment weighing on its order book.
Furthermore, XRP was one of the altcoins that resisted the Bitcoin crash the longest. It is therefore in an earlier phase of correction and capitulation compared to competitors like Solana.
Is XRP’s Key Support in Danger Against Selling Pressure?
From a purely technical perspective, XRP’s setup points to a deeper drop in the medium term. The price is currently below its critical support zones from its range of several months at $1.33. Below this level, XRP could plunge even lower.
The FBB and the liquidation heatmap point to a local support between $1.27 and $1.25 this weekend if the drop continues. In the medium term, XRP has a strong chance of falling to $1.12 and then $0.86.
Nevertheless, in the meantime, a bounce to test the 16H bearish order block formed a few days earlier at $1.50 is also likely. Bottoms are often tedious to form, and the range remains valid if XRP reclaims $1.34.
Momentum indicators confirm this fragility. The RSI is approaching the oversold territory on the HTF. We will need to monitor for a bullish divergence on the 4H or 12H charts to validate a potential bounce.
Can XRP Replicate Hyperliquid’s Success?
The comparison with Hyperliquid’s dazzling success highlights XRP’s structural challenges. While HYPE flirts with its ATH, the Ripple token must first shake off sellers and find a favorable demand zone for smart money to step in.
From a liquidity standpoint, the VPFR indicates that the strongest HTF demand zone sits between $0.60 and $0.50. But a drop to this level could take months or even years for XRP to play out.
However, the crypto market is renowned for its sudden reversals. If liquidity starts rotating from overbought altcoins into consolidated assets, the Ripple token could benefit from a capital influx and catch short sellers off guard. Indeed, shorts are piling up to $1.46 at the time of writing.
Will whales take advantage of this price zone to accumulate and trigger an explosive breakout? Or is XRP doomed to underperform while new projects capture all the attention of traders?
In any case, the coming days are likely to be red for XRP as the stock market is expected to experience a latency phase between May 25 and June 5. A drop in the S&P 500 could push Bitcoin toward $73,000 and XRP down to $1.12.
In the very short term, XRP has crucial support down to $1.277, represented by a 4H order block. However, XRP is showing a recent bearish order block to the upside. In other words, sellers are massively liquidating their positions this weekend. It is therefore essential to remain vigilant.
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