XRP Plummets! Shocking New Legislation Could Wipe Out Your Crypto Investment—Find Out Why!

The cryptocurrency market is witnessing significant activity around XRP, particularly with the anticipated impact of the Market Structure Bill and the recent performance of XRP-spot ETFs. Analysts are projecting a bullish outlook for XRP over various timeframes, fueled by net inflows into these ETFs and Ripple’s continued progress in mainstream adoption.

In the short term, specifically within the next one to four weeks, XRP’s target price is set at approximately $2.50. This optimism is largely based on the expectation that the Senate will pass the aforementioned Market Structure Bill, which is anticipated to provide a more structured regulatory environment for cryptocurrencies, bolstering investor confidence and supporting the current price levels of XRP.

For the medium term, spanning four to eight weeks, analysts forecast a target price of $3.00, while the longer-term outlook, projected over eight to twelve weeks, stands at $3.66. These targets suggest a strong belief in the potential for XRP to capitalize on favorable market conditions and regulatory clarity.

However, several downside risks could jeopardize this bullish outlook. Notably, if the Bank of Japan indicates a series of rate hikes, aiming for a hawkish neutral interest rate between 1.5% and 2.5%, it could narrow the interest rate differential between the U.S. and Japan. Such a scenario might lead to a yen carry trade unwind, similar to what occurred in mid-2024, which could adversely impact risk assets like XRP. Additionally, diminishing expectations for a Federal Reserve rate cut in the first half of 2026, delays in the Market Structure Bill’s progression, or outflows from XRP-spot ETFs could further contribute to a bearish trend. If these conditions materialize, XRP could slide below $1.85, signaling a potential reversal in market sentiment.

On January 23, XRP experienced a minor decline of 0.19%, closing at $1.9184, which contrasts with the overall crypto market that saw a slight gain of 0.05%. This slip has left XRP trading below its 50-day and 200-day exponential moving averages (EMAs), indicating a prevailing bearish trend. Nonetheless, strong underlying fundamentals continue to support a positive outlook amid these technical challenges.

Key technical levels to monitor include support levels at $1.85, $1.75, and $1.50, while resistance is noted at $2.00, $2.50, $3.00, and $3.66. Particularly, a move above $2.00 could lead to the 50-day EMA coming into play, with a breakthrough signaling a near-term bullish trend reversal and a possible rise toward $2.20. A sustained move through both EMAs would bolster the medium- and long-term price targets, reinforcing the bullish sentiment surrounding XRP.

As the cryptocurrency landscape continues to evolve, the coming weeks will be critical for XRP. With significant legislative developments on the horizon and market dynamics in play, investors are closely watching both technical indicators and regulatory movements that could shape the future of this digital asset.