The XRP price slid 5% on Wednesday as a wider market pullback dragged most major tokens lower, knocking the altcoin back to roughly $1.43. Experts point to the same recurring forces behind the swing: persistent geopolitical tensions in the Middle East and a shortage of fresh, bullish catalysts.\u00a0<\/p>\n
Despite the near-term weakness, market observers remain upbeat about XRP\u2019s longer-term prospects, centering their optimism on an anticipated policy development in Washington.\u00a0<\/p>\n
Industry analysts widely believe that passage of the CLARITY Act \u2014 the proposed crypto market-structure bill in the US Congress \u2014 would materially improve XRP\u2019s institutional outlook by formally classifying the token as a digital commodity<\/a>.\u00a0<\/p>\n That legal status would place XRP on a regulatory footing similar to Bitcoin (BTC) and Ethereum (ETH) and, according to proponents, remove a major barrier to large-scale adoption by banks, asset managers, and payment providers.<\/p>\n In a new analysis, Sam Daodu of 24\/7 Wall St. argued <\/a>that the CLARITY Act is the single most important catalyst that could propel the XRP price past key resistance levels.\u00a0<\/p>\n He noted that commodity designation would allow US banks to use XRP for cross-border settlement via Ripple\u2019s payment rails without the looming uncertainty that a regulatory reclassification might later introduce.\u00a0<\/p>\n That legal clarity, Daodu said, would unlock institutional confidence and encourage sizeable inflows into XRP investment products such as exchange-traded funds <\/a>(ETFs).<\/p>\n Daodu also cited forecasts from Standard Chartered\u2019s Geoffrey Kendrick, who previously set an $8 target for XRP in 2026, premised on the passage of the CLARITY Act<\/a>. Kendrick\u2019s model anticipates $4 billion to $8 billion in cumulative ETF inflows by year-end if the bill passes.<\/p>\n Consensus among many analysts places the XRP price between $5 and $10 should the legislation clear Congress, with an $8 price implying a market capitalization near $490 billion \u2014 a level Daodu argues is plausible if banks adopt XRP for actual payment use rather than the token remaining a retail trading vehicle.\u00a0<\/p>\n Daodu went further in outlining further upside scenarios: if the CLARITY Act were approved and Ripple\u2019s application for a master account <\/a>at the Federal Reserve were also successful by late 2026, some models project XRP could trade in a $15\u2013$30 range under full bank adoption.<\/p>\n The CLARITY Act passed the House in July 2025 by a 294\u2013134 vote and moved through the Senate Agriculture Committee on January 29. However, the Senate Banking Committee has yet to schedule a new markup since January, and negotiators have not published a reconciled draft that satisfies both crypto and banking stakeholders.\u00a0<\/p>\nXRP Price Targets Lifted\u00a0<\/h2>\n