The virtual currency market is entering a high-stakes week, $XRP We are right in the middle of a crossfire. As of Monday, January 12, 2026, Ripple tokens have fallen by approximately 1%; $2.07 mark. On the other hand, the broader market has $BTC and $ETHwhile remaining relatively flat, XRP is reacting sharply to a mix of political drama and looming legislative changes in Washington.
XRP Price Analysis: Testing Downtrend Resistance
Looking at the present XRP/USD Looking at the daily chart, you can see that this is an important technical battleground. After the massive rally seen earlier this year, XRP has been consolidating within a large descending wedge.
XRP/USD 1D – TradingView
- Resistance breakout: Price is currently aligned with the yellow long-term downtrend line. Clean daily closing prices above $2.15 could signal a bullish breakout, potentially $2.40 and $2.80 level.
- Support zone: On the downside, there is a strong horizontal support zone (highlighted in yellow) in between. $1.80 and $1.90. If macro pressures increase, this will be a “must hold” area for bulls.
- Stochastic RSI: Momentum indicators are showing a crossover in neutral territory, suggesting the next move is likely to be determined by the underlying news cycle rather than pure technical exhaustion.
Regulatory Storm: Digital Asset Market Transparency Act
The main driver of current volatility is not just “crypto news” but high-level political maneuvering. above January 15ththe U.S. Senate Banking Committee is scheduled to discuss HR 3633also known as Digital Asset Market Transparency Act of 2025.
This bill is a huge deal for Ripple. It aims to define jurisdictional boundaries between regulators and could end years of “regulation by enforcement” that has plagued the industry. For traders using Top Tier cryptocurrency exchangethe outcome of this session could determine whether institutional liquidity floods into XRP or remains on the sidelines.
Powell investigation and the US dollar
Adding to the “risk-off” sentiment is a strange situation at the Fed. The U.S. dollar index (DXY) fell 0.4% on reports that the Department of Justice may investigate Fed Chairman Jerome Powell over his recent testimony to Congress.
A weaker dollar is usually a tailwind for cryptocurrencies, but the sheer uncertainty from the Fed leadership crisis is spooking markets ahead of tomorrow’s inflation report. When the “plumbing” of the financial system is threatened, even fundamentally strong assets like XRP tend to be temporarily drained as traders take refuge in cash.
Ripple’s global triumphs and local woes
It’s not all gloomy for Ripple. Just last week, the company’s UK arm won new approval from the US. FCAstrengthening our position as a regulated global payments powerhouse. However, until the US makes its position clear, Digital Asset Market Transparency ActXRP will continue to be traded as a “pure risk gauge”.
