XRP gives back gains after Senate crypto bill sparks 5% rally

$XRP keeps hovering just below the same breakout zone traders have watched for weeks, but positioning underneath the market is starting to build again. Volume jumped sharply ahead of the Senate Banking Committee’s CLARITY Act markup, while ETF inflows and rising derivatives exposure suggested traders were preparing for a larger move rather than fading the rally outright.

News Background

• The Senate Banking Committee scheduled markup discussions for the CLARITY Act on May 14, legislation that could formally reinforce $XRP’s regulatory status as a commodity.

• $XRP exchange-traded products absorbed $40 million in inflows during the week ending May 8, with year-to-date inflows climbing to $191 million.

• Ripple-linked market activity also remained elevated after $XRP ETFs recorded their strongest daily inflow session since January earlier this week.

Price Action Summary

• $XRP climbed from $1.4468 to $1.462 during the 24-hour session before consolidating below resistance.• The strongest move came during the May 14 18:00 UTC session, when 291.5 million $XRP traded and pushed price as high as $1.5417.• Momentum later cooled, with $XRP drifting back toward the $1.46 area as traders locked in profits near the highs.

Technical Analysis

• $XRP continues compressing beneath the same $1.50 resistance zone that has repeatedly capped rallies since February.• The market is still making higher lows underneath resistance, which matters because repeated tests usually weaken overhead supply over time.• Derivatives positioning climbed sharply, with Binance open interest reaching its highest levels in weeks, signaling traders were adding exposure ahead of potential regulatory catalysts.• Shorter-term momentum faded late in the session as $XRP formed a descending intraday channel, though the broader consolidation structure remains intact for now.

What traders should watch

• $1.50 remains the key breakout level. A sustained move above it would likely shift focus toward $1.60 and potentially the $1.80 area.• $1.46 is now the immediate support zone after the post-rally consolidation.• The Senate CLARITY Act process could become a near-term volatility catalyst, especially given the elevated derivatives positioning currently building across exchanges.