Ripple’s XRP token continues to face resistance at the $1.42 price level despite Bitcoin (BTC) reclaiming the $81,000 mark. However, it should be noted that XRP has made a slight recovery over the last week, rising from $1.35 on April 30, to where it is now. According to CoinGecko statistics, XRP has risen by 0.9% in the last 24 hours, 2.1% in the last week, and 6% over the previous month. Nonetheless, the asset is still down by 1.8% in the 14-day charts and 33% since May 2025. Let’s discuss why XRP may be struggling right now.
Why Is XRP Struggling?
XRP is not the only asset to display signs of struggle under current circumstances. Bitcoin’s (BTC) rally could be due to increased ETF and ETP inflows, whereas XRP has not seen a similar pattern.
Additionally, some experts, such as ARK Invest CEO Cathie Wood, have said Bitcoin (BTC) could be a hedge against inflation. It is possible that investors bought the BTC dip, driving its price higher. However, the same could not be said for XRP, at least not yet.
XRP’s struggles could also be due to the Federal Reserve keeping interest rates unchanged. Higher rates often lead to lower inflows into risky assets as borrowing remains difficult. Furthermore, the US is weighing the passing of the Clarity Act. It is unclear if the legislation will see the light of day in its current format. Many have asked for changes, and several senators have asked for more ethics in the bill. The uncertainty around the Clarity Act may be also playing a role in XRP’s predicament.
Also Read: Clarity Act Explained: Is It A Good Time To Invest In Crypto?
However, XRP could see a change of tide over the coming weeks. There is a chance that upcoming Federal Reserve chair, Kevin Warsh, will reduce interest rates after assuming office. Such a move could trigger a rally for the crypto market.
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