The XRP, Bitcoin, and Ethereum prices remained in a bear market after falling by over 20% from their highest points this year. Bitcoin has dropped by ~30% from, while XRP and ETH have fallen by ~50% and ~41%. This article provides a forecast for these tokens ahead of the CLARITY Act and the US Crypto Reserve plans.
CLARITY Act and US Crypto Reserve Plans
The regulatory space this year largely revolved around the GENIUS Act and altcoin ETF approvals by the Securities and Exchange Commission (SEC). The agency has already approved ETFs on some popular coins like XRP, Solana, and Hedera Hashgraph.
Looking ahead, XRP, Bitcoin, and Ethereum prices will react to the Clarity Act and potentially, the Crypto reserves plans in the United States.
The Digital Asset Market Clarity Act of 2025, commonly known as the CLARITY, has already passed in the House of Representatives. Senators are debating it and chances are that they may pass it in January.
This act will provide a definition of digital commodities, provide exemptions from the SEC registration for certain mature blockchains, and introduce new registration requirements for exchanges, brokers, and dealers.
Meanwhile, politicians will continue to deliberate on the creation of a cryptocurrency reserve for the US government. While Donald Trump supports this, chances are that it will not be passed because of the divisions in the House and the Senate. Indeed, a Polymarket poll has the odds of a Bitcoin reserve before 2027 at just 27%.
Ideally, cryptocurrency prices would do well when these regulations pass. For example, the CLARITY Act will make it easier for companies in the industry to operate, while a crypto reserve will lead to immediate accumulation by the US government.
Ethereum Price Technical Analysis
The daily chart shows that the ETH price has tumbled in the past few months. This crash may continue in the coming month as the coin has formed a death cross, a bearish flag, and is about to move below the 61.8% Fibonacci Retracement level.
Ethereum price also remains below the Supertrend indicator. Therefore, the most likely forecast is bearish, with the initial target being the November low of $2,622. A break below that level will point to more downside.
XRP Price Prediction
The chart below shows that the Ripple price has moved into a strong bear market. It has dived by double-digits from the year-to-date high. On the positive side, the coin has formed an inverse head-and-shoulders pattern, a common bullish reversal sign.
It has also formed a bullish divergence pattern as the MACD and the Awesome Oscillator have continued rising. A move above the descending trendline will point to more gains as the XRP ETF inflows continue. The initial target is the psychological point at $2.5 followed by the next level at $3.
Bitcoin Price Forecast
Bitcoin price is sending bearish signals on the daily chart. Like the Ethereum price, it has formed a death cross pattern and is below the Supertrend indicator.
BTC is also forming a bearish pennant pattern and the two lines of the symmetrical triangle are nearing their confluence.
Therefore, the coin will likely drop in the coming weeks, with the initial target being at $80,000, the lowest point in November. A drop below that price may see it crash to the April low of $74,000.