On 3 August, US Senate Majority Leader John Thune announced plans to hold an initial vote on the CLARITY Act before the August recess. However, as of 5 August, no exact date for the vote had been announced, and the future progress of the bill remained uncertain. Potential approval of the legislation could reduce regulatory uncertainty surrounding digital assets and influence XRP, although it would not automatically guarantee a change in its regulatory status.
Technical Analysis of Ripple
On the four-hour XRP/USD chart, the decline from July’s local highs gradually slowed, leading to a narrowing trading range that resembles a contracting triangle pattern. On 6 August, the price attempted to break below the formation, and the downside potential remains intact. If the decline continues, the next key area of interest is around $1.0200, where the market could find a reaction.
If the breakout proves to be false, the price will face several important levels on the upside: the lower boundary of the current profile at $1.0590, the POC zone at $1.0690, and the upper boundary at $1.0830. A move above the profile would also bring the red resistance level at $1.0900 into focus. The RSI and MAs indicators show readings of 33, 39 and 43. The RSI line and the faster moving average have already moved below the neutral zone, while the slower MA is only beginning to approach a potential exit from it.
Attention should also be paid to vertical volume: activity has increased noticeably in the middle of the triangle, which does not fully align with the typical pattern of volume contraction ahead of a breakout. This divergence raises questions about the technical quality of the formation and the reliability of the breakout signal.
Summary
The break below the lower boundary of the triangle occurred amid unusual volume activity within the pattern, adding further uncertainty to the current setup. XRP’s next move may depend not only on technical factors but also on the outlook for the CLARITY Act, which could influence sentiment across the broader cryptocurrency market.
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