Foreign media: Analysts say the CLARITY Act may boost XRP

Foreign media reports that XRP briefly fell below $1 this week, but quickly regained this level. Market analyst Gareth Soloway believes this rapid recovery of a key round number may signal that short-term selling is nearing its end, and the market’s focus is shifting back to the progress of the CLARITY Act in the U.S. Congress.

Quick recovery after breaking below $1

Soloway stated that $1 is a psychological price level closely watched by traders. A brief dip below it often triggers cluster stop-loss orders set around that area, resulting in a round of passive selling.

He emphasized that what matters more is not the break itself, but the rebound speed. In his view, XRP almost instantly climbed back above $1 after the drop—a move often seen in technical analysis as a sign of a short-term bottom, indicating buying interest emerged at lower levels.

Focus on $0.96 to $0.97 support

The analyst also noted that XRP has already broken out upward from its longer-term wedge pattern, but the price did not immediately rally after the breakout and instead pulled back slightly.

He believes this doesn’t necessarily signal a trend reversal. The $0.96 to $0.97 area is currently forming strong support. If buying continues to appear here, XRP's short-term structure can still be maintained. Based on this, he said he remains bullish on XRP.

• Key psychological level: $1
• Support zone to watch: $0.96 to $0.97
• First upside target: $1.50 to $1.55

Progress of the Act becomes the market focus

The article notes that the most closely watched variable is whether the CLARITY Act can pass Congress around September or October. Soloway said he personally remains cautious, but his research team tends to believe there is a possibility the Act could pass.

According to his estimate, if the Act is passed, XRP may rise 50% to 100%. His first upside target is in the $1.50 to $1.55 range. This level has repeatedly acted as resistance, with XRP pulling back after touching it three times previously.

If the price can effectively break through this area, there is potential for further gains; if it is rejected again, XRP may go into a period of consolidation before attempting another breakout.

Additional information: The article also mentions that there are still disagreements over the ethical provisions in the Act. The negotiation progress until early September will be an important point for the market to assess the Act’s prospects.