Ripple Price Forecast: XRP slips as liquidity improves, ETF inflows return

• XRP moderates below $1.40 after Monday’s short-lived uptrend near $1.50.
• XRP Binance Liquidity Index rises to the highest level in six months, signaling a liquidity comeback as activity soars.
• US-listed spot ETFs recorded roughly $12 million in inflows on Monday, pushing assets under management up to $1.58 billion.

Ripple (XRP) is losing strength, trading below $1.40 on Tuesday. Although minor, the correction comes after a sharp move toward $1.50 the previous day and aligns with a lethargic outlook in the broader crypto market.

Market participants have shifted their attention to the upcoming Senate vote on the crypto CLARITY Act later on Tuesday, which is broadly expected to fail despite United States (US) President Donald Trump agreeing to new ethics rules.

Looking ahead, the Federal Reserve (Fed) is widely expected to raise interest rates on Wednesday, adopting a stricter monetary policy amid persistent inflation that defiantly sits above the central bank’s 2% target.

A sustained recovery above $1.40 would help to stabilize XRP’s bullish outlook, increasing the odds of a short-term breakout. However, trading below the same level could keep XRP range-bound, with demand at $1.30 cushioning against extended losses.