XRP Price Analysis: Ripple Dips to $2.07 as Regulatory Clouds Gather

The cryptocurrency market is entering a high-stakes week, and $XRP is caught right in the crossfire. As of Monday, January 12, 2026, the Ripple token has slipped approximately 1%, trading near the $2.07 mark. While the broader market, including $BTC and $ETH, remains relatively flat, XRP is reacting sharply to a cocktail of political drama and looming legislative shifts in Washington.

XRP Price Analysis: Testing the Downtrend Resistance

Looking at the current XRP/USD daily chart, we can see a significant technical battleground. After the massive rally seen earlier in the year, XRP has been consolidating within a large descending wedge.

XRP/USD 1D - TradingView

• Resistance Breakout: The price is currently hugging a long-term yellow descending trendline. A clean daily close above $2.15 would signal a bullish breakout, potentially targeting the $2.40 and $2.80 levels.
• Support Zones: On the downside, there is a strong horizontal support zone (highlighted in yellow) between $1.80 and $1.90. If macro pressure intensifies, this is the "must-hold" area for bulls.
• Stochastic RSI: The momentum indicator shows a crossover in neutral territory, suggesting that the next move will likely be dictated by the fundamental news cycle rather than pure technical exhaustion.

Regulatory Storm: The Digital Asset Market Clarity Act

The primary driver for the current volatility isn't just "crypto news" but high-level political maneuvering. On January 15, the U.S. Senate Banking Committee is set to debate H.R. 3633, also known as the Digital Asset Market Clarity Act of 2025.

This bill is a massive deal for Ripple. It aims to define the jurisdictional boundaries between regulators, potentially ending the years of "regulation by enforcement" that has plagued the industry. For traders using a top-tier crypto exchange, the outcome of this session could determine whether institutional liquidity floods back into XRP or remains on the sidelines.

The Powell Probe and the U.S. Dollar

Adding to the "risk-off" sentiment is a bizarre turn of events at the Federal Reserve. Reports that the Justice Department might probe Fed Chair Jerome Powell over recent Congressional testimony have sent the U.S. Dollar Index (DXY) down 0.4%.

While a weaker dollar is usually a tailwind for crypto, the sheer uncertainty of a Fed leadership crisis is rattling markets ahead of tomorrow’s inflation report. When the "plumbing" of the financial system is under threat, even fundamentally strong assets like XRP tend to see temporary outflows as traders retreat to cash.

Ripple's Global Wins vs. Local Woes

It isn't all gloom for Ripple. Just last week, the company’s U.K. unit secured fresh approvals from the FCA, reinforcing its status as a regulated global payments powerhouse. However, until the U.S. clarifies its stance on the Digital Asset Market Clarity Act, XRP will likely continue to trade as a "pure risk gauge."