XRP price fell 3% within the last 24 hours as White House discussions did not bridge the policy gap between traditional finance and DeFi over stablecoin returns, dampening the token's recent momentum.
No Progress in Stablecoin Yield DisputeInverse Head and Shoulders Increases XRP Chance of Hitting $1.80
XRP/USD four-hour price chart. Source: TradingView
No progress in stablecoin yield dispute
The discussions in Washington didn’t end in a transparent statement on whether yield-producing stablecoins needs to be treated more like banking products, security-like instruments or something else. This uncertainty is significant because stablecoins are at the middle of crypto liquidity and yield structures influence where capital is parked: on exchanges, in money market-like products or in DeFi lending pools.
Since there was no solution, traders reduced the chance. XRP, which had benefited from improving sentiment ahead of the session, fell because the market reassessed the probabilities of near-term regulatory clarity.
The decline remained orderly as demand for spot XRP ETFs remained strong. Sustained inflows suggest investors still favor regulated XRP exposure at the same time as political headlines change into chaotic.
Daily net inflows of the Spot XRP ETF. Source: SoSoValue
This divide has left XRP caught between political uncertainty that limits upside potential and ETF-driven buying that cushions setbacks.
Inverse Head and Shoulders increases XRP likelihood of reaching $1.80
XRP's 4-hour chart shows a developing inverse head and shoulders pattern, typically a bullish reversal structure.
The left shoulder formed around $1.45, the pinnacle marked a pointy capitulation wick at around $1.12, and the correct shoulder stabilized above $1.35. The neckline is near the $1.45-$1.48 zone, which also coincides with the short-term EMA resistance.
XRP/USD four-hour price chart. Source: TradingView
A confirmed breakout above the neck line with strong volume would confirm the pattern. The measured move projects the head-to-neck distance at around $0.30-0.35, implying a technical upside goal at around $1.75-1.80. Failure to reclaim the neck line would invalidate the setup and drive XRP prices back towards the local low of around $1.11.
On-chain signals proceed to strengthen a bearish outlook, particularly as XRP's spot price falls below the combination cost basis of all holders. Simply put, most holders who bought XRP are actually underwater.
The realized XRP price in comparison with the spot prices. Source: Glassnode
An analogous outlook preceded broader downcycles in 2018 and 2022. Therefore, the probability of the XRP price continuing to say no increases.
