XRP slides 7% in early June as CLARITY Act stalls and ETFs hold $1.4 B

XRP closed May at $1.33 and slipped to $1.24 by June 2, a 7% decline that erased about $8 billion from its market cap as Bitcoin slipped to $67,000 and the broader crypto market sold off [1]. The price drop follows the CLARITY Act’s progress through the Senate: the bill cleared the Banking Committee on May 14, sparked a brief rally above $1.55, then fell back after the Senate placed it on the Legislative Calendar on June 1, making a full‑floor vote possible but not yet scheduled [1].

Institutional demand remains strong despite the price weakness. Spot XRP ETFs have accumulated $1.39 billion in net inflows since launching in November 2025, with May delivering a record $131.94 million month and $95 million to $124 million year‑to‑date, according to SoSoValue data cited by multiple reports [1][2][3]. The inflows are spread across five funds—Canary Capital, Grayscale, Franklin Templeton, Bitwise, and 21Shares—reducing reliance on any single product [2]. By contrast, Solana’s ETF inflows are concentrated in Bitwise’s BSOL fund, highlighting XRP’s broader institutional appeal [2].

Technical indicators show the downside pressure is still dominant. XRP sits below its 7‑day, 14‑day, and 30‑day moving averages, and a breakdown under $1.30 on June 1 occurred with 96.26 million volume, confirming a decisive sell‑off [1]. The RSI has fallen to 27.55 and the Stochastic Oscillator is deep in oversold territory, suggesting short‑term exhaustion may be near. Immediate support sits at $1.20; a daily close below that could push the token toward $1.00, while a rebound above $1.34 would reopen the path to $1.45 resistance [1].

A Monte Carlo simulation of 10,000 price paths places the most likely June range between $1.26 and $1.46, covering roughly 60% of outcomes and indicating a sideways market as the baseline scenario [1]. If the CLARITY Act clears the Senate floor and ETF inflows stay robust, the median price jumps toward $1.56, with the top 10% of scenarios reaching $2.20. Conversely, a stalled bill and cooling institutional demand raise the probability of a dip toward $1.00 to 35% [1].

The market’s next move hinges on whether the Senate schedules a floor vote before the August recess. A positive vote could trigger a short squeeze, given current short‑to‑long ratios of about 9 to 1, while a delay may keep the token trapped near the $1.20 support zone. Investors will be watching both legislative developments and the continued strength of ETF inflows to gauge whether XRP can break its current range.