Although the entire cryptocurrency market rallied on Monday, perhaps to the surprise of a lot of people given the upcoming expectations for a Fed rate hike, XRP was at the forefront, surging from under $1.35 to $1.50 to mark a three-week peak.

It was rejected there, but still remains close to $1.40 ahead of what could be a major day for all crypto assets, including XRP.

XRP Braces for CLARITY Vote

The US Senate is expected to vote shortly after 2 p.m. ET today on cloture for the motion to proceed with the landmark crypto market-structure legislation. It’s worth noting that this is not a final passage vote. Instead, it will show whether the bill has legs to run in the Senate, as it requires 60 votes simply to advance to formal debate. This means that Republicans need support from several Democrats or independents while also avoiding defections within their own party.

The latest developments on the matter were somewhat promising as Senate Republicans released another revised version over the weekend in an attempt to address disagreements surrounding stablecoins, banking competition, and public officials’ crypto interests. However, Senate Democrats sent a counterproposal late last night, even though their Republican counterparts had said their version was “best and final.”

For XRP, the implications are particularly interesting as it already enjoys substantially more regulatory certainty than before or during Ripple’s years-long battle with the SEC. However, the CLARITY Act would establish a durable statutory framework dividing oversight between the SEC and the CFTC and provide clearer rules for digital-asset intermediaries.

$2 Next?

In a previous article, we discussed (with the help of ChatGPT) what could go wrong for XRP in case of a negative vote. In this one, we will reverse course, as most analysts are quite bullish on the asset. One thing they all agree on is that volatility is likely to go wild.

CasiTrades sees the next important upside objective around $1.74-$1.78, followed by an even higher target at $2.00 if momentum continues. EGRAG CRYPTO, who has been among the most bullish XRP commentators, highlighted the importance of the asset maintaining its 100-day EMA around $1.38-$1.40, which is currently being tested again. Holding that level would preserve the broader bullish structure, but losing it could result in a major leg down.

Other analysts, including Mikybull Crypto and Bird, also pointed to improving XRP momentum immediately ahead of the Senate vote. The first test, though, is very close. A sustained breakout above the $1.50 area could open the door toward $1.60, with $1.74-$1.78 coming into focus shortly after. Naturally, $2.00 would return as the obvious next psychological objective.

Source: CryptoPotato