XRP's Biggest Hit in 2026: Can XRP Price Recover?

As the wider cryptocurrency market responded to the failure of the Clarity Act in the United States, $XRP experienced one of its biggest short-term corrections in months, falling roughly 12.2% in a matter of hours. The U.S. Senate fell well short of the necessary 60 votes, voting 49-50 against using cloture to move the bill forward.

Setback for the industry

Ripple CEO Brad Garlinghouse described the result as painful but argued that crypto's development does not depend entirely on the bill. Stuart Alderoty, CLO of Ripple, emphasized that the vote has no effect on $XRP's current legal status in the U.S. However, the initial market response was harsh for $XRP.

$XRP fell toward $1.27 after trading at about $1.45, then slightly recovered to around $1.29. A significant volume spike coincided with the decline, indicating that meaningful selling, rather than a low-liquidity drift, was involved in the move. The $1.35 region that helped $XRP consolidate in September has now been lost technically.

Because it also aligns with the long-term moving average visible on the daily chart, that level is especially significant. What had previously served as support is now the first major obstacle to any recovery attempt. Beneath the current price, a credible recovery structure still exists.

Levels to be tested

A dense cluster of rising moving averages between $1.25 and $1.29 is now being tested by $XRP. Buyers stepped in around the token's intraday low of $1.27, preventing an immediate decline toward $1.20. As a result, $XRP must defend roughly $1.25 in the first recovery scenario. Reclaiming $1.30 would be the first sign of stabilization if that holds.

The significantly more difficult task is the $1.34-$1.36 range. To offset a large portion of the technical damage caused by the sell-off, $XRP must regain this area. The next targets after that would be $1.40 and $1.45.

If $1.25 fails, the bearish scenario becomes significantly stronger. $XRP would then fall below several important moving averages and expose the $1.20-$1.22 range, followed by roughly $1.15.

Although $XRP has withstood the initial 12.2% shock, the chart has undergone significant changes. Holding $1.25 would preserve the broader August recovery structure, while reclaiming $1.35 would put bulls back in a much stronger technical position.