XRP Price Eyes Rebound as Bullish Chart Signals Emerge While CLARITY Act Vote Nears

XRP could be positioning for a short-term recovery as bullish technical indicators begin to emerge, while investors continue to monitor progress on the U.S. CLARITY Act, a proposed cryptocurrency market structure bill that could significantly influence the digital asset industry.

Crypto analyst Ali Martinez believes XRP's daily chart is displaying two technical signals that may indicate the recent downtrend is losing momentum. According to Martinez, the first bullish indicator comes from the Tom DeMark Sequential, which has generated a "9" buy signal on the daily timeframe. Historically, this pattern has often preceded a relief rally lasting between one and four trading sessions.

In addition, XRP has formed a Morning Star Doji candlestick pattern over the last three daily candles. Technical analysts widely view this formation as a potential bullish reversal signal that typically appears after a sustained decline. While the setup suggests improving market sentiment, Martinez emphasized that confirmation depends on stronger buying activity. If trading volume increases, he believes XRP could advance toward the $1.30 level.

Beyond technical analysis, XRP investors are also watching developments in Washington, where lawmakers are working to advance the CLARITY Act before Congress begins its August recess.

Journalist Eleanor Terrett reported that Senate Republicans are showing renewed urgency to move the legislation forward despite Congress currently being on its July 4 recess. However, several key issues remain unresolved, including ethics provisions, differences between Senate Banking and Agriculture Committee drafts, state preemption rules, and conflict-of-interest language affecting cryptocurrency exchanges.

Democratic support may ultimately depend on whether lawmakers adopt ethics measures they consider sufficient to address concerns surrounding President Donald Trump's cryptocurrency business interests. Reflecting the legislative uncertainty, Galaxy Digital has reportedly lowered the probability of the CLARITY Act passing to 50%.

The legislative calendar also presents another obstacle. Senate Majority Leader John Thune acknowledged that time is becoming limited to resolve outstanding issues before lawmakers turn their attention to the annual defense authorization bill following their return on July 13.

If negotiations continue to make meaningful progress during the congressional recess and no competing legislative priorities delay the process, the earliest realistic window for a Senate vote on the CLARITY Act is expected to begin during the week of July 20.

For now, XRP remains caught between encouraging technical momentum and regulatory uncertainty. A confirmed breakout supported by higher trading volume, combined with positive progress on U.S. crypto legislation, could provide additional catalysts that traders and investors will be watching closely in the weeks ahead.