XRP price has gone sideways since February this year as the crypto winter continued. This consolidation may be about to end, as Ripple has formed a double bottom on the daily chart.
XRP Price Prediction as a Double-Bottom Form
The daily timeframe chart shows that the XRP token has come under pressure over the past few months, as it has lacked a clear catalyst.
On the positive side, the token has been forming a double-bottom pattern at $1.2845 and a neckline at $1.6047, its highest level in March this year.
A double-bottom pattern is one of the most common bullish reversal signs in technical analysis because it signals that bears are reluctant to place trades below that price.
The Average True Range (ATR) indicator has continued falling and is now hovering near its lowest level since 2024. A falling ATR indicator sends a signal that an asset’s trend is weakening.
Meanwhile, the spread between the three lines of the Bollinger Bands has narrowed substantially in the past few weeks. The same is happening with the Donchian Channels. In most cases, the narrowing of these three lines usually leads to a strong move in either direction.
In this case, the double-bottom pattern points to a strong rebound, initially to the neckline at $1.6047, which is about 18% above the current level. A move above that price will signal further gains, potentially to the key resistance level at $2.
Ripple Token to Benefit From the CLARITY Act
A key catalyst for the XRP price is the CLARITY Act, which is expected to pass later this year, with analysts predicting that the markup at the Senate Banking Committee will happen later this month.
The passage of the CLARITY Act will be important for XRP, as it is one of the largest cryptocurrencies in the industry. It is also a major player in the stablecoin sector, with RLUSD having a market capitalization of over $1.4 billion.
Meanwhile, there are signs that American investors are once again buying XRP tokens. Data shows that spot XRP ETFs have added over $10 million this month, a sharp reversal after losing over $30 million in assets last month.
Another potential catalyst for the XRP token is that Rakuten, a major player in the e-commerce industry, has enabled users to make purchases with XRP. This will unlock over 44 million users in Japan.
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