BTC and ETH stayed relatively stable as XRP absorbed most of the market’s reaction to the CLARITY Act delay.
XRP fell on August 7 after the US Senate delayed a vote on the CLARITY Act until September, adding new pressure to a token that had already been losing ground against Bitcoin (BTC) for weeks.
The setback has renewed attention on historical price trends, with analyst ChartNerd arguing that August has consistently been a difficult month for XRP during US midterm election years.
XRP Faces Selling Pressure After Senate Delays CLARITY Vote
ChartNerd wrote on X that XRP was “already bleeding” after news emerged that the Senate had postponed consideration of the CLARITY Act until after the summer recess.
Journalist Eleanor Terrett reported that sentiment across the crypto industry was mixed following the decision to push the vote into September, with some participants frustrated while others remained hopeful that lawmakers would make the bill a priority when Congress returns. Digital Chamber CEO Cody Carbone said the industry would continue working to secure enough support for a successful vote after the recess.
Bitwise CIO Matt Hougan had said that failing to pass the CLARITY Act before Congress leaves for recess would likely weigh on sentiment in the near term, although he contended that clearer expectations could leave the market better positioned later in the year. He also noted that regulatory action from the SEC could still provide guidance even if the legislation is delayed.
“Weak hands are selling today,” noted ChartNerd, as Hougan’s assessment became a reality. However, he argued that Bitcoin and Ethereum (ETH) had yet to see similar selling and warned that XRP could face more downside before conditions improve.
In another post, he described the move as typical for August, telling traders to focus on historical data rather than emotion. The historical data he shared showed that the Ripple token posted negative August returns during every previous US midterm year, falling 5.7% in August 2014, 23.0% in 2018, and 13.7% in 2022. This produced an average drop of about 14%.
You may also like:
According to the analyst, the current weakness fits that historical pattern and does not represent any new development.
Analyst Keeps Long-Term View Despite Near-Term Weakness
CoinGecko data showed XRP trading at around $1.02 at the time of writing, down 3.0% in 24 hours and nearly 6% across the week. Trading volume climbed more than 14% to about $1.33 billion, suggesting that selling activity picked up as prices slipped.
The broader crypto market was also slightly weakened, with the total market cap down 0.6%, while BTC held around $64,000 and Ethereum sat close to $1,900 with barely any movement.
Even with the latest decline, ChartNerd has not abandoned his longer-term outlook. Earlier this week, he argued that XRP is inside a large cup-and-handle formation stretching back more than eight years, with possible long-term targets at $8, $13, and $27 if the broader pattern eventually plays out.
At the same time, he acknowledged that short-term trading could be difficult and has previously said that the asset could spend much of the rest of the year consolidating around the $1 level before any sustained recovery can start.