The price of XRP fell 3% over the past 24 hours as White House discussions failed to narrow the policy gap between traditional finance and DeFi on stablecoin returns, dampening the coin’s recent momentum.
There is no progress in the stablecoin yield dispute
The talks in Washington did not result in a clear position on whether yield-bearing stablecoins should be treated like banking products, securities-like instruments, or anything else. This uncertainty is important because stablecoins are at the center of crypto liquidity, and their return structures influence where capital pools are located: on exchanges, in money market-style products, or in DeFi lending pools.
Traders reduced risk in the absence of a solution. XRP, which benefited from improved sentiment ahead of the meeting, fell as the market repriced the prospects for near-term regulatory clarity.
The decline remained orderly because spot demand for XRP ETFs remained strong. The continued inflows suggest that investors still prefer regulated exposure to XRP even as policy headlines get chaotic.
This split has left XRP caught between policy uncertainty limiting the upside, and ETF-led buying cushioning the pullbacks.
An inverse head and shoulders position raises the odds of XRP reaching $1.80
The four-hour chart of XRP is showing a head and shoulders inverse pattern, usually a bullish reversal structure.
The left shoulder formed near $1.45, the head formed a sharp surrender wick around $1.12, and the right shoulder settled above $1.35. The neckline is near the $1.45-1.48 area, which also corresponds to short-term EMA resistance.
A confirmed break above the neckline with strong volume would confirm the validity of the pattern. The measured move forecasts the distance from the head to the neckline, approximately $0.30 – $0.35, implying an upside technical target near $1.75 – $1.80. Failure to reclaim the neckline will invalidate the setup, sending XRP prices back to a local low of around $1.11.
On-chain signals also reiterate the bearish outlook, especially with the spot price of XRP falling below the total cost basis for all holders. In simple terms, most of the XRP holders who bought XRP are now underwater.
Similar forecasts preceded broader down cycles in 2018 and 2022. Thus, it increases the chances of the price of XRP falling further.
