XRP Price Analysis: Formation of Key Dragonfly Doji Pattern

According to Gate market data, XRP/USDT is currently trading at $1.92, down 2.91% over the past 24 hours. In early 2026, XRP’s price briefly broke through the $2.4 mark but then retreated.

This price fluctuation coincides with a critical moment in the legislative process of the U.S. “Digital Asset Market Clarity Act,” as market participants weigh the dual impact of technical signals and regulatory developments on XRP’s future trajectory.

01 Market Pulse: XRP Latest Price and Dragonfly Doji Pattern Analysis

Based on real-time data from the Gate platform, XRP’s price showed significant volatility today, with the latest quote at $1.92, a 2.91% decrease in 24 hours.

This price pattern forms a noteworthy Dragonfly Doji in technical analysis. The Dragonfly Doji typically appears at the end of a downtrend, characterized by a very small or nonexistent real body, a long lower shadow, and a short or absent upper shadow.

From a technical perspective, this pattern indicates that selling pressure dominated the trading session, pushing the price sharply lower, but ultimately buying interest intervened, bringing the price back near the opening level. It is often seen as a potential trend reversal signal, suggesting that bearish momentum may be waning.

02 Regulatory Crossroads: Core Content and Legislative Progress of the “Clarity Act”

The U.S. “Digital Asset Market Clarity Act” is becoming a focal legislative issue for the 2026 cryptocurrency market. The bill successfully passed the House Financial Services and Agriculture Committees in 2025 and is currently under review by the Senate Banking Committee.

The bill’s core goal is to establish a federal regulatory framework for the U.S. digital asset market, designating the Commodity Futures Trading Commission (CFTC) as the primary regulator for “digital commodities” (such as Bitcoin and merged Ethereum) and related intermediaries.

For XRP, a key provision in the bill states that tokens listed as primary assets in exchange-traded products (ETPs) or exchange-traded funds (ETFs) on U.S. exchanges before January 1, 2026, will be reclassified as “non-security assets.”

This classification would effectively remove these tokens from the jurisdiction of federal securities laws, aligning them with commodities like Bitcoin and Ethereum, thereby eliminating the legal gray area that has hindered institutional participation for years.

03 Diverging Positions: The Logic Behind Ripple’s Support and Coinbase’s Opposition

Within the crypto industry, clear differences in stance have emerged regarding the “Clarity Act.” Ripple CEO Brad Garlinghouse publicly expressed support, emphasizing “clarity over chaos,” and believes the bill’s success “is a win for cryptocurrency.”

In stark contrast, Coinbase has withdrawn its support for the bill. CEO Brian Armstrong pointed out several issues, including an actual ban on tokenized stocks, DeFi prohibitions, and amendments that could stifle stablecoin rewards.

Coinbase is particularly concerned about the restrictions on stablecoin rewards, as this could directly impact its revenue streams. Reports indicate that Coinbase earned approximately $300 million in Q1 2025 from its partnership with Circle, directly related to USDC rewards.

The banking sector supports the restrictions on stablecoin rewards in the bill. U.S. bank CEOs, including Brian Moynihan, warned that if stablecoin rewards remain unchanged, up to $6 trillion in deposits could flow into stablecoins.

04 Market Impact: XRP’s Regulatory Reclassification and Institutional Adoption Outlook

If the “Clarity Act” passes as currently drafted, XRP will gain a clear regulatory status, ending the long-standing “security” controversy that has hindered its development. This regulatory clarity could serve as a significant catalyst for institutional capital inflows.

According to Bloomberg Intelligence analysis, by 2026, institutional allocations to cryptocurrencies could reach 5% of their portfolios, potentially directing billions of dollars into established assets like XRP.

Integration with traditional financial systems is also accelerating. Federal agencies such as the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) have lifted previous restrictions, allowing banks to custody and trade crypto assets—this move could unlock trillions in institutional capital.

RippleNet continues to expand its global footprint, partnering with over 300 financial institutions across 45 countries. Recent developments include major Asian banks implementing on-demand liquidity solutions.

05 Future Outlook: XRP Price Predictions and Key Catalysts

Based on CryptoResearchReport’s quantitative model, the market envisions three main scenarios for XRP in 2026: a conservative range of $1.20-$1.80; a baseline of $2.50-$3.20; and a bullish scenario potentially exceeding $4.00.

Long-term, analysts believe XRP could reach $5 by 2030, contingent upon several conditions: significant real-world application expansion, regulatory clarity in major economies, and technological execution surpassing competitors.

This price target implies XRP’s market cap would need to approach $500 billion, positioning it among the most valuable financial assets globally.

Beyond regulation, inflows into XRP ETFs are also seen as a key catalyst. Since their initial launch in 2025, XRP ETF inflows have steadily increased, with expectations that more XRP ETFs could be approved by 2026.

XRP Long-term Development Path Forecast

Future Outlook

The market is seeking a balance between two forces: on one side, the short-term rebound suggested by the Dragonfly Doji pattern on technical charts; on the other, the long-term regulatory certainty brought by the legislative process of the U.S. “Clarity Act.”

The outcome of this legislative battle will determine the competitive landscape between crypto exchanges and traditional banks in the coming years. Until consensus is reached, Garlinghouse’s warning of “chaos” may continue to dominate the regulatory reality.

Meanwhile, XRP’s short-term volatility and long-term prospects are increasingly intertwined with macro factors beyond the market itself. For traders closely monitoring Gate platform data, understanding the interaction between technical patterns and regulatory developments will be key to grasping XRP’s future trajectory.