Soloway: XRP Rally Possible if CLARITY Act Passes This Fall

XRP traders may be in for a surprise if the CLARITY Act passes by October. Analyst Gareth Soloway says XRP's recent dip below $1 and subsequent recovery could signal a short-term bottom, potentially leading to a rally of up to 100%. According to Soloway, once a token pierces a widely watched psychological level like $1, retail stop-loss orders tend to cluster around it, triggering forced selling and liquidations.

The analyst points out that XRP quickly bounced back above the $1 level, describing this as a potential bottoming tail, a classic technical signal. Soloway also notes a longer-term wedge pattern that recently broke out, but notes that a breakout doesn't guarantee an immediate rally.

Despite the messy chart, Soloway sees strong support building in the 96 to 97 cent range and expects buyers to defend it. He's currently long on XRP, citing 'green shoots' beneath the surface.

The bigger question hanging over XRP is what happens if the CLARITY Act passes. Soloway estimates a rally of 50% to 100%, with an initial upside target of $1.50 to $1.55 if it clears Congress in September or October. However, lingering friction remains around the bill's ethics provisions.