XRP Slumps to $1.08 Amid Regulatory Uncertainty, Hawkish Fed
XRP's price ended July on a weaker note due to fresh regulatory uncertainty and broader macroeconomic headwinds. The token traded at $1.08 on July 31, slipping slightly over the past 24 hours while extending its weekly decline of nearly 5.7%. Several factors contributed to XRP's weakness, including delays in US crypto legislation, a hawkish Federal Reserve stance, slowing institutional momentum, and increased whale activity.
The proposed CLARITY Act, aimed at creating a clear regulatory framework for digital assets, was postponed by lawmakers, weakening investor optimism and expectations for regulatory clarity. The Federal Reserve maintained a cautious tone on inflation, keeping interest rates unchanged but strengthening the US dollar and reducing demand for risk assets like XRP. Large XRP holders transferred significant amounts of tokens to major exchanges, which are often interpreted as potential selling activity.
Futures open interest has climbed to around 2.27 billion XRP, suggesting traders are increasing bearish positions and hedging against further downside. While the $1.00 level remains an important psychological support for the market, analysts believe any progress on US crypto regulation or renewed ETF inflows could improve sentiment.