XRP drops to $1.28 as selling pressure rises after Iran airstrikes

XRP slid to about $1.28 on May 28, 2026, after U.S. airstrikes on Iran pulled the broader crypto market lower, intensifying short‑term selling pressure while Ripple’s pending Federal Reserve master account and the Senate‑approved CLARITY Act remain unresolved [1].

Regulatory backdrop and the Fed master account

Ripple secured a conditional national trust bank charter from the OCC in December 2025, but it still lacks a Federal Reserve master account, which would let the firm settle payments directly on Fedwire and FedNow [1]. Without that account, banks must pre‑fund foreign‑exchange accounts, tying up capital and slowing settlements. The master account is viewed as the next “domino” that could shift XRP from a peripheral bridge token to a core settlement layer, potentially unlocking new institutional partnerships.

The Senate Banking Committee’s CLARITY Act, passed on May 14, 2026, classified XRP as a digital commodity and nudged the price from $1.42 to $1.52 within hours [1]. However, the act still needs a 60‑vote Senate floor passage and a presidential signature, projected for early August. Until those steps materialize, the token remains vulnerable to macro shocks, as demonstrated by today’s drop below $1.30.

Supply dynamics and on‑chain pressure

XRP’s circulating supply sits at roughly 61.8 billion tokens [2]. Each month, Ripple releases about 1 billion XRP from escrow, then relocks 60‑80% of that amount, leaving an effective net addition of 300‑400 million XRP per cycle [2]. Glassnode data show that about 60 % of holders bought near $1.44‑$1.46, creating a sizable sell‑side wall at that range [2]. The combination of a steady drip of new supply and a concentration of break‑even positions makes it difficult for the price to break higher without a strong catalyst.

Market sentiment and recent price action

Regulatory news has historically driven XRP’s biggest moves. A July 13, 2023 court ruling that XRP was not a security sparked a 72 % rally in 24 hours, while anticipation of a lawsuit resolution pushed the token to $3.65 in July 2025 [1]. This year, the CLARITY Act’s Senate approval produced a modest $0.10 rise, but today’s macro‑driven sell‑off shows that broader market forces can outweigh regulatory optimism.

What to watch

• $1.30 support – a breach could trigger further downside toward $1.20.
• Federal Reserve master account decision – any update from the Fed could act as a catalyst for price movement.
• Full Senate passage of the CLARITY Act – expected by early August; a vote could lift the token back toward $1.50‑$1.60.

The price dip to $1.28 underscores how quickly macro events can override regulatory progress, leaving XRP’s next move dependent on both the Fed master account outcome and the final fate of the CLARITY Act.