XRP (CRYPTO: XRP) faces a critical test as Tuesday’s CLARITY Act procedural vote threatens to unwind bullish positioning built ahead of the closely watched crypto legislation.

Bitrue Research Institute told Benzinga in an email that Binance liquidation data shows leveraged positioning is skewed to the downside, leaving XRP vulnerable if the Senate vote fails or is delayed.

CLARITY Act Vote Raises Stakes

Bitrue pointed to elevated political uncertainty around the CLARITY Act: Democrats have pushed back against the latest legislation over ethics provisions and are preparing a counterproposal raising failure probabilities.

That matters for XRP because traders have treated U.S. crypto market-structure legislation as a major regulatory catalyst.

A failed vote could remove that near-term tailwind just as leveraged longs sit near a key liquidation zone.

Bitcoin (CRYPTO: BTC) weakness and the Fed decision could add pressure on XRP, with BTC support near $76,000 a key level to watch.

Why $1.38 Matters For XRP

The three-day Binance liquidation heatmap shows a dense cluster of long liquidations around $1.38-$1.39, according to Bitrue.

This could be the immediate downside magnet if the CLARITY Act vote disappoints traders.

Comparatively, a more dispersed short-liquidation liquidity lies between $1.45 and $1.50. A push through will be required to turn a positive vote into a more sustained breakout.

A break below that range could trigger additional liquidations and expose $1.30-$1.32.

Holding the level could keep XRP consolidating ahead of the Fed decision.

Bitrue said even a successful procedural vote could produce only a temporary spike if XRP fails to clear $1.50 with strong volume.

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