XRP gave back all of Wednesday's gains just hours after a Senate crypto bill briefly sent the token up 5%. The move pushed XRP toward resistance, but it couldn't hold — and by Thursday morning the price had slid back into the same range it's been stuck in for weeks. The whipsaw came as derivatives activity surged ahead of a key Senate vote that could formally reinforce XRP's commodity status.
The rally that wasn't
The bill, introduced by a bipartisan group of senators, proposes clearer definitions for digital assets — language that would classify XRP as a commodity rather than a security. Traders piled in on the news, driving a rapid 5% gain. But the momentum didn't stick. XRP stayed pinned below its long-standing resistance level, and the price faded almost as fast as it spiked.
Derivatives activity spikes
Open interest on XRP derivatives jumped sharply during the rally, according to exchange data. The surge suggests bets were placed on a breakout — bets that didn't pay off. The pullback left leveraged long positions underwater, and a modest liquidation cascade added to the selling pressure.
What the Senate vote means
The same committee that advanced the bill is expected to hold a floor vote next week. If it passes, the legislation would direct the CFTC to treat XRP as a commodity, effectively ending years of regulatory limbo. The SEC's ongoing lawsuit against Ripple, which has dragged on since 2020, would likely be affected — though the outcome of that case still depends on the courts. For now, traders are waiting to see if the vote actually happens, and what the final language looks like.
Next week's deadline
The Senate is scheduled to take up the bill on May 20. If it clears that hurdle, attention shifts to the House, where a similar bill is stalled. Until then, XRP is stuck — caught between a rally that fizzled and a vote that could change everything.
