Analyst says XRP could rally regardless of CLARITY Act as token eyes key resistance

XRP Mirrors Past Patterns Ahead of Potential Rally

Dark Defender noted that XRP is displaying technical patterns similar to those observed in 2014 and 2017, periods that preceded substantial gains for the cryptocurrency. He explained that the token is currently forming what he describes as an exponential moving average (EMA) “jumping pattern,” which historically has signaled major upward moves.

The analyst pointed out XRP’s consistent ability to hold above its 100-month EMA, which he referred to as the “Parabolic Surge Line.” He also highlighted that XRP closed August above its 50-month EMA, reinforcing the technical setup suggesting an upward momentum.

While previous instances of this setup led to significant rallies, Dark Defender emphasized that history does not guarantee a repeat. Currently, XRP trades near $1.40, remaining well below its all-time high, and faces strong technical resistance in the $1.50 to $1.55 range. Support for the token is seen between $1.35 and $1.31, setting clear boundaries for its near-term price action.

Dark Defender stressed that “XRP could be technically ready for a breakout whether or not the CLARITY Act advances,” highlighting that the token’s long-term moving average structures resemble periods before earlier rallies.

Recent analysis from Coinpaper observed a 57% rebound in XRP after dropping toward $0.90 in August, demonstrating the token’s renewed momentum and resilience following sharp declines.

Regulatory Events May Influence Market, but XRP Path Remains Independent

The CLARITY Act, a major piece of legislation aimed at providing a legal framework for digital assets, is set for a procedural vote in the Senate on September 15. Although this step is not a final passage, it represents a significant hurdle in the legislative process for regulating the crypto market.

Despite acknowledging the importance of the CLARITY Act, Dark Defender argued that XRP may not need new legislation as a catalyst for its next price surge. He suggested that the token’s existing technical structure is sufficient to potentially drive a breakout, with or without Congressional action.

Ripple, the company behind XRP, continues to be a central player in the ongoing regulatory discussions in the United States. The company’s legal battle with the Securities and Exchange Commission (SEC) has already established a unique legal context for XRP, distinct from most other digital assets in the U.S. market.

Coinpaper recently remarked that the protracted SEC case has provided XRP with a higher degree of regulatory clarity, setting it apart from other cryptocurrencies still awaiting clearer legal guidelines.

Mini dictionary: CLARITY Act, a pending U.S. Congressional bill aiming to clarify and define the legal status of digital assets, including cryptocurrencies, and provide a clear regulatory framework for the industry.

Coinpaper observed that XRP has “an unusual degree of regulatory clarity,” referencing its unique legal situation after Ripple’s ongoing SEC litigation.