XRP Price Update: US Banks Push Back as XRP Defends $2 Support

What to Know

• XRP has extended its losing streak to four days as US banks resist crypto-friendly legislation and stablecoin yield proposals.
• Strong inflows into US XRP spot ETFs, totaling $1.28 billion, continue to support the key $2 psychological level.
• Legislative uncertainty around the Market Structure Bill remains a major headwind for XRP sentiment.
• Despite bearish technical signals, XRP fundamentals point to a cautiously constructive outlook.
• Institutional interest and XRP’s real-world utility remain critical to the medium-term narrative.

XRP Slips for Fourth Straight Day as Banking Sector Pushes Back

XRP prices remained under pressure, extending losses for a fourth consecutive session as the US banking sector intensified efforts to slow the expansion of crypto-friendly legislation. The token’s recent weakness reflects growing uncertainty around regulatory developments in Washington, particularly surrounding stablecoin yields and the broader Market Structure Bill.

Despite the selling pressure, XRP continues to defend the crucial $2 psychological level, supported by sustained demand from US-listed XRP spot exchange-traded funds. This tug-of-war between regulatory headwinds and institutional inflows has defined XRP’s recent price action.

Market Structure Bill Delays Weigh on Sentiment

The Market Structure Bill remained a focal point over the weekend as concerns grew over whether crypto-native firms can successfully push through legislation that would clarify regulatory oversight. The bill aims to establish clear jurisdictional boundaries and operational rules for digital asset markets, but progress has been slower than anticipated.

Uncertainty intensified after Coinbase withdrew support for the Senate Banking Committee’s draft text, citing concerns related to restrictions on stablecoin rewards. The move highlighted widening tensions between traditional financial institutions and crypto companies over access to yield and customer capital.

Why Stablecoin Yields Are a Flashpoint

At the heart of the dispute lies the issue of yield-bearing stablecoins. Banks argue that allowing crypto firms to offer yields on stablecoins could destabilize the traditional deposit system, while crypto advocates see yield as a natural evolution of digital finance.

Stablecoins that offer competitive returns could draw capital away from bank deposits, reducing the funding base that banks rely on for lending. This dynamic explains the strong resistance from the banking sector and the push to limit stablecoin rewards through legislation.

How Banks Protect Profitability Through Net Interest Margins

US banks generate a significant portion of their earnings through net interest margins, the difference between the interest paid to depositors and the interest charged on loans. Depositors typically earn minimal interest, while banks lend those funds at higher rates to businesses and consumers.

The introduction of yield-bearing stablecoins threatens this model. If depositors can earn materially higher returns through stablecoins, banks risk losing a substantial share of their low-cost funding base, pressuring profitability and credit availability.

Stablecoins as a Structural Threat to Traditional Banking

The rise of regulated stablecoins offering competitive yields could fundamentally reshape the financial system. Capital migration from traditional banks to blockchain-based financial products would erode banks’ long-standing dominance over deposits.

Industry executives have warned that trillions of dollars could exit the banking system if stablecoin yields are permitted at scale. Such a shift would force banks to rely on more expensive wholesale funding or reduce lending activity, both of which would negatively impact earnings.

Public Opinion Favors Stablecoin Rewards

Public sentiment appears increasingly aligned with crypto innovation rather than banking protectionism. Recent surveys suggest nearly half of Americans believe consumers should be allowed to earn rewards on stablecoins, while only a small minority support government intervention to ban such incentives.

Crypto holders, in particular, overwhelmingly support US leadership in stablecoin innovation, viewing regulatory clarity as essential for maintaining global competitiveness. This disconnect between public opinion and banking lobby pressure adds political complexity to the legislative process.

Why Regulatory Delays Still Matter for XRP

While stablecoin yields do not directly impact XRP’s utility, regulatory delays weigh on broader crypto adoption and sentiment. XRP’s value proposition is closely tied to real-world payment use cases, especially in cross-border settlement and liquidity management.

Clear crypto regulation would likely accelerate institutional adoption of XRP-based solutions, increasing transactional demand and strengthening the supply-demand balance. As long as regulatory uncertainty persists, XRP demand remains sensitive to legislative headlines.

XRP Spot ETF Inflows Signal Institutional Confidence

Despite recent price weakness, institutional demand for XRP remains robust. Since launching in November, US XRP spot ETFs have attracted approximately $1.28 billion in net inflows, outperforming several competing crypto ETF products.

These inflows suggest investors view XRP as more than a speculative asset, instead recognizing its potential role in regulated financial infrastructure. Strong ETF demand has been instrumental in keeping XRP above the $2 level despite broader market volatility.

Legislative Headlines Continue to Drive Price Swings

XRP’s sensitivity to regulatory developments has been evident in recent weeks. The token surged sharply after initial optimism surrounding the Market Structure Bill but retraced gains once legislative delays became apparent.

This pattern underscores how closely XRP’s valuation is tied to policy clarity. Each update from Capitol Hill has the potential to trigger rapid repricing as investors reassess the regulatory outlook.

XRP Price Levels Traders Are Watching

XRP closed the latest session near $2.06 after four consecutive daily declines. The token now trades below its 50-day and 200-day exponential moving averages, signaling near-term technical weakness.

Key support remains at the $2.0 psychological level, followed by secondary supports near $1.75 and $1.50. On the upside, reclaiming the 50-day EMA would be an early signal of a trend reversal, opening the door toward higher resistance zones.

Technical Signals vs Fundamental Support

While technical indicators currently lean bearish, fundamentals continue to offset downside risks. Institutional ETF demand, long-term utility prospects, and expectations of eventual regulatory progress all provide a foundation for recovery.

A sustained move above $2.20 would shift focus toward the 200-day EMA, while a decisive break above both EMAs would reinforce a medium-term bullish structure.

Key Risks That Could Pressure XRP Further

Several developments could undermine XRP’s outlook. These include continued delays or rejection of crypto legislation, outflows from XRP spot ETFs, or a shift toward tighter global financial conditions.

Macroeconomic risks, such as reduced expectations for US interest rate cuts or renewed central bank hawkishness, could also dampen risk appetite and weigh on crypto markets broadly.

Why Holding Above $2 Remains Critical

The $2 level represents a major psychological and technical threshold. Maintaining price action above this level preserves XRP’s constructive structure and keeps recovery scenarios viable.

A sustained break below $2 would expose lower technical levels and signal a bearish trend shift. Conversely, stabilization above $2 increases the probability of a renewed move higher once regulatory clarity improves.

XRP Outlook Hinges on Washington and Central Banks

Looking ahead, XRP’s trajectory will largely depend on developments in Washington and broader macro conditions. Progress on crypto legislation, renewed optimism around interest rate cuts, and continued ETF inflows would strengthen the bullish case.

Central bank rhetoric, particularly from the Federal Reserve and the Bank of Japan, also plays a role by influencing global liquidity conditions and risk appetite.

What Comes Next for XRP

While short-term price action remains volatile, XRP’s longer-term narrative remains intact. Regulatory clarity, institutional participation, and real-world adoption continue to underpin its value proposition.

As legislative battles play out and financial markets adjust to evolving policy signals, XRP is likely to remain headline-driven. Traders and investors will continue to monitor ETF flows, Capitol Hill developments, and macroeconomic data for directional cues.

Q&A: XRP Price Outlook

Why is XRP falling despite strong ETF inflows?

XRP is under pressure due to US banks pushing back on crypto-friendly legislation, delaying stablecoin yields and creating short-term uncertainty. ETF inflows help defend the $2 support, but technicals remain cautious.

What are the key XRP support and resistance levels?

Support levels: $2.0, $1.75, $1.50. Resistance levels: $2.5, $3.0, $3.66. A break above $2.2 would signal a bullish trend reversal.

How could US crypto legislation affect XRP price?

Passing crypto-friendly legislation would likely boost demand for XRP by clarifying regulations and supporting stablecoin yields, reinforcing bullish medium- and long-term price targets.

What role do XRP-spot ETFs play?

ETF inflows reflect strong institutional confidence in XRP’s utility. Continued inflows help maintain support levels and provide a buffer against selling pressure.

What is the medium- to long-term price forecast for XRP?

Medium-term (4–8 weeks) target: $3.0. Longer-term (8–12 weeks) target: $3.66. A break above $3.66 could signal a potential move toward $5 in the next 6–12 months.

For more daily crypto forecasts and expert technical analysis on assets like XRP, Bitcoin (BTC) and Ethereum (ETH), visit our Cryptocurrency Forecasts section and stay ahead of market moves.