XRP just gave traders a scare and a signal in the same breath. The token briefly dipped below a dollar this week before snapping back almost immediately, a move one analyst says could mark a short-term bottom right as the market braces for a potential CLARITY Act decision.
A Dip Below a Dollar, Then a Quick Bounce
XRP price briefly dipped below a dollar before quickly bouncing back above that level, according to analyst Gareth Soloway, who called the move significant for a specific reason. Once a token pierces a widely watched psychological level like $1, retail stop-loss orders tend to cluster right around it, triggering a wave of forced selling and liquidations.
What caught Soloway’s attention wasn’t the dip itself, but how fast XRP recovered.
“It almost immediately bounced back above a dollar,” he said, describing the pattern as a potential bottoming tail, a classic technical signal that can mark the end of a short-term selloff rather than the start of a deeper one.
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Why the Chart Still Looks Bullish, Even Messy
Soloway also pointed to a longer-term wedge pattern that recently broke out. A breakout doesn’t guarantee an immediate rally, he said, and XRP has instead been drifting slightly lower since. That’s not necessarily bad news. The analyst sees strong support for XRP building in the 96 to 97 cent range now, an area he expects buyers to defend.
Combined with the bottoming tail and a burst of buying interest on the dip, Soloway said he’s currently long on XRP.
“Even as nasty as the chart looks, there are green shoots,” he said, borrowing a phrase from traditional finance to describe early signs of stabilization beneath an otherwise rough-looking chart.
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The Scenario Everyone’s Watching: CLARITY Act Passage
The bigger question hanging over XRP right now is what happens if the CLARITY Act actually clears Congress in September or October. Soloway was clear that he remains somewhat skeptical personally, even as his own research team leans toward expecting passage.
A CLARITY Act approval could send XRP up 50% to 100%, the analyst estimates, a range he acknowledged isn’t outlandish for anyone who’s followed XRP through past cycles. His first upside target for XRP if CLARITY passes is around $1.50 to $1.55 now, a level XRP has already tested and gotten rejected from three separate times on the chart.
Clearing that zone convincingly would open the door to further gains. Failing to break through, he said, would likely mean a period of consolidation before the next attempt higher.
Lingering friction remains around the bill’s ethics provisions, and the real test, according to the discussion, comes down to what happens in negotiations between now and early September.
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