The delay of the US CLARITY Act announced at the end of the business week harmed several altcoins, but XRP’s price dipped the most among the larger caps.

BTC and ETH managed to hold support on Friday, remaining above or at key milestones at $64,000 and $1,900. XRP, on the other hand, slipped to just over $1. That’s why we decided to ask ChatGPT for its analysis of the matter and whether Ripple’s token will continue to face adverse consequences.

Why Such a Reaction, XRP?

The answer to whether the token will inevitably crash below $1, according to the popular AI solution, was “not necessarily, but the risk has increased.” It explained that the cross-border altcoin has become uniquely tied to US regulatory developments, dating back to the beginning of the lawsuit against the SEC nearly six years ago.

Unlike bitcoin, which has institutional and ETF demand, or Ethereum, which benefits from tokenization, stablecoins, and treasury accumulation from companies like Bitmine, much of XRP’s bullish narrative over the past few years has centered on regulatory clarity.

Passage of the CLARITY Act would likely cement its commodity status in federal law and provide greater certainty for banks, institutions, and ETF issuers. In contrast, delaying the process postpones those potential inflows rather than eliminating them.

OpenAI’s solution pointed out that XRP had historically rallied aggressively on regulatory optimism earlier in the cycle, making it more vulnerable to disappointment when the catalyst faded. Certain analysts agree with the thesis that XRP could indeed slip below $1 soon, but they believe this would open the door for a more profound rally.

Is Sub-$1 Inevitable?

Again, ChatGPT doesn’t believe this is the most probable scenario; instead, it thinks XRP has several catalysts that could prevent such a move. Perhaps the most significant support comes from the company behind the token and its substantial expansion experienced over the past few years, which included major partnerships, acquisitions, and regulatory wins, albeit in other jurisdictions.

The AI also noted that markets tend to overreact to legislative delays – after all, it doesn’t necessarily mean the bill will fail. If investors begin pricing in eventual approval rather than focusing solely on timing, Ripple’s token could stabilize before Washington returns in September.

Nevertheless, it didn’t completely rule out a dip below $1.00, especially if the broader crypto sentiment deteriorates and BTC loses key support. In addition, macroeconomic news or war escalation can trigger another leg down, and both of those factors are outside the scope of the regulatory delay.

Source: CryptoPotato