The U.S. Senate's rejection of the Clarity Act on September 16 sent a shockwave through digital asset markets, with XRP absorbing one of the heaviest blows among major cryptocurrencies. The bill needed 60 votes to advance but failed after Republicans could not attract Democratic support, dashing hopes for clearer rules around crypto trading and holding.
XRP traded near $1.27–$1.28, down roughly 9% on the day, its largest single-day percentage loss since February 5. The token had been changing hands between $1.40 and $1.45 in the previous 24 hours. The slide cut XRP's market capitalization to about $80 billion, equal to 3.34% of the total cryptocurrency market cap, and left it roughly 65% below its all-time high of $3.65 set on July 18 of last year. Its all-time high market cap was $210 billion.
Broader market weakness provided important context: Bitcoin fell about 2% to $75,500, while Ethereum dropped 4% to trade below $2,400. XRP's 24-hour trading volume was reported near $80.46 billion, reflecting intense activity as buyers attempted to absorb selling pressure.
In the aftermath, market participants noted that the Trump administration may have a Plan B, particularly given prior cooperation with Cardano, Coinbase, and Ripple. However, until a new path emerges, sentiment remains defensive.
Technical analysts said the rejection invalidated a previously watched fourth-wave structure that had targeted $1.78. XRP broke below the 0.5 Fibonacci retracement, and until it can reclaim the macro 0.618 level at $1.65 as support, lower Fibonacci levels remain valid. The next key level to watch is the macro 0.786 around $1.10, which has multiple degrees of alignment and lines up as a potential C-wave target. Some analysts warn that $0.87—the macro 0.854 level—is also possible and remains largely untested. The market is now watching whether buyers can stabilize XRP around $1.28 or whether another wave of selling pushes the token toward those lower targets.
