XRP fell to $1.33 after Clarity Act approval odds dropped to 53%, while on-chain data showed the largest realized loss spike since 2022. The token also broke below the $1.40 support level as broader crypto markets declined 3.24% over 24 hours to $2.19 trillion.
The decline followed a new 15% tariff announced by the Trump administration. The move triggered a risk-off reaction across digital assets. Traders responded to rising uncertainty around policy and regulation.
At the same time, sentiment weakened as prediction market odds for the Clarity Act dropped sharply. Polymarket data showed approval chances falling from 70% to 53% before a partial rebound later Tuesday.
The proposed Clarity Act aims to define oversight for digital assets among federal agencies. Lawmakers seek clearer rules for token and stablecoin issuers under a structured legal framework.
White House officials discussed compromises during closed-door meetings. The talks included limits on yields for idle stablecoin holdings. Industry and banking leaders also met at ETHDenver last Friday to review proposals.
Negotiators narrowed discussions to activity-based rewards and worked toward compromises before a March deadline. Despite those efforts, falling approval odds dampened market mood during the week.
Meanwhile, geopolitical tensions and the new 15% tariffs added further pressure. The combined factors weighed on XRP and other major tokens as traders reassessed exposure.
On-chain data shows XRP recorded its steepest realized loss surge since 2022. Weekly losses approached negative $1.93 billion. A similar event occurred 39 months ago during a period of heavy fear.
After that earlier selloff, XRP climbed 114% within eight months. Analysts note that sharp realized losses often signal capitulation as weaker holders exit positions.
When selling pressure peaks, it can gradually ease. Some traders interpret such spikes as early recovery signals. The recent data has therefore drawn close attention.
The network metrics show that daily transactions have begun to increase rapidly. Arizona lawmakers advanced legislation that would permit the state to establish a digital asset reserve containing XRP. The current developments have created speculation about a price breakout, which might occur if network momentum and policy recognition continue their current path.
Daily successful transactions on the XRP Ledger increased about 40% in recent weeks. Activity now approaches 2.5 million transactions per day, according to network data.
Participants process cross-border payments, token transfers, and decentralized finance applications on the ledger. Rising activity often signals expanding real-world utility within the ecosystem.
Yet some traders question the quality of that activity. One shared screenshot showed repeated small transactions from the same address executed in rapid succession.
That detail raised concerns that a limited number of wallets may drive a portion of the volume. As XRP trades near the $1.30 support level, traders now watch whether network growth offsets bearish technical pressure.
Read More: XRP Ledger Launches Members-Only Bank Exchange: XRP Still Below $1.50
XRP price slipped to $1.33 after Clarity Act approval odds on Polymarket fell to 53% from 70%. The wider crypto market also dropped 3.24% to $2.19 trillion after a new 15% tariff. On-chain data showed realized losses near $1.93B while XRP Ledger transactions climbed toward 2.5M daily.