XRP Trapped in Tight Range as Oversold Levels Spark Rebound Hopes

XRP is currently trading in a tight range between $1.00 and $1.12, leaving investors wondering whether to sell their holdings or wait for a rebound.

The token has dropped into some of its deepest oversold levels on record, which could lead to a sharp move higher if short positions are liquidated or closed during the current rise.

CW, a crypto analyst, noted that bearish bettors are cutting their losses during the rise, which can fuel short covering and potentially lead to a rebound.

However, it's worth noting that short covering rarely holds without fresh buying behind it. The token has historically been flat in August, averaging just 0.43% return and closing the month red for four consecutive years.

The clearest catalyst for an XRP rebound remains the CLARITY Act, which is still pending a Senate vote. If lawmakers miss this window, it could push crypto legislation off until as late as 2030.