XRP at $1.17: Network Upgrade, Fed Deadline, and Senate Vote Converge on an Oversold Market

XRP drops to $1.17 but network gets core upgrade, EVM sidechain, and Mastercard integration. Two Washington deadlines could reclassify XRP as a commodity and unlock $8B in ETFs.

The XRP token has tumbled nearly 38% year-to-date, hitting $1.17 and briefly touching a 52-week low of $1.07 on Friday. Yet beneath the surface, the network is undergoing its most consequential infrastructure overhaul of the year, while two Washington deadlines could reshape the regulatory landscape within weeks. The disconnect between price and progress has rarely been starker.

The heart of the technical upgrade is a fundamental rebranding of the core server software. When XRP Ledger version 3.2.0 rolls out, the software previously known as “rippled” will be renamed “xrpld” — a move developers say creates a uniform standard across all nodes. The new version cuts memory requirements and forces every infrastructure provider and validator to update their systems. A migration guide has been published to ensure a smooth transition. Alongside the software revamp, the long-awaited EVM sidechain is already live, integrating Ripple’s stablecoin RLUSD directly into the network. Mastercard has also entered the picture, using regulated stablecoins like RLUSD for payment settlements.

On the regulatory front, two significant dates are fast approaching. On May 19, President Trump signed an executive order requiring the Federal Reserve to decide within 90 days whether to grant crypto firms access to its payment accounts. Ripple, alongside Anchorage Digital and Wise, stands to benefit directly. Without a Fed master account, Ripple must route dollar settlements for cross-border payments through partner banks, incurring fees and counterparty risk. A direct account would allow its RLUSD stablecoin to use the same Fed infrastructure as traditional banks. Kraken already proved the concept is attainable with a successful approval in March, though the Fed has signaled a pause on new crypto decisions until December. The 90-day clock is ticking.

Simultaneously, the Digital Asset Market Clarity Act has advanced. The Senate Banking Committee approved the bill in mid-May, and it has been on the Senate voting calendar since June 1. If passed, the law would permanently classify XRP as a commodity. Standard Chartered estimates that passage could unlock up to $8 billion in additional ETF inflows. Spot ETFs focused on XRP have already accumulated $1.43 billion since their launch last November, with May setting a new monthly record.

Large investors are not waiting for the outcome. In May, nearly $132 million poured into XRP-focused funds. Whale wallets holding more than 10,000 XRP hit an all-time high, and investors have been pulling tokens off exchanges — 25 million XRP were withdrawn recently. The exodus has drained liquidity on platforms like Binance to multi-year lows, creating a tinderbox where even small orders can trigger extreme price swings.

Technically, the token is deeply oversold. The relative strength index sits around 23, and the price is more than 28% below its 200-day moving average. The selling pressure has been historic. Yet the fundamentals are evolving: the XRP Ledger plans to activate a lending protocol in mid-2026, allowing institutional players to issue uncollateralized fixed-term loans via single asset vaults, transforming the blockchain from a pure payments network into a broader financial platform.

The convergence of the Fed’s 90-day deadline, a Senate vote on the CLARITY Act, and a modernized network infrastructure sets up a volatile period. Any positive decision from Washington would land on a market that is technically exhausted and liquidity-starved — a combination that historically has preceded sharp reversals.