XRP Deciding Moment Incoming. A Major Breakout Is Coming If This Structure Holds

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Crypto analyst Josiah Gallegos believes XRP is approaching a decisive point, with both its technical structure and the regulatory calendar potentially setting the stage for its next major move.

In his recent market update, Gallegos pointed to a bullish chart formation that he says is developing while XRP continues to hold above an important technical level. He also suggested that progress on the CLARITY Act in the U.S. Senate could provide an additional boost if lawmakers approve the legislation before the August recess.

Gallegos presented a daily XRP chart showing what he described as a textbook inverse head-and-shoulders pattern, a formation that technical analysts often associate with the end of a downtrend and the beginning of a potential upward reversal.

Inverse Head and Shoulders Pattern Nears Confirmation

The chart shared by Gallegos highlights three distinct lows that form the inverse head-and-shoulders structure. The middle low represents the head, while the two surrounding lows form the shoulders. A horizontal neckline sits just above the current trading range, marking the level XRP would need to overcome to confirm the pattern.

Gallegos stated that XRP is “quietly forming” this setup and maintained that it remains one of the strongest bullish reversal patterns in technical analysis. He added that if the structure remains intact, the market could be preparing for a significant breakout.

His chart also includes a descending trendline that has guided XRP lower for several months. Gallegos indicated that the cryptocurrency has already begun to break out of this long-term downtrend, suggesting that bullish momentum may be developing even before full confirmation above the neckline.

Moving Averages Remain in Focus

Beyond the chart pattern, Gallegos emphasized the importance of XRP’s moving averages. He noted that the asset is currently trading above its 50-day exponential moving average, which he views as a constructive sign for the ongoing recovery.

He identified the 200-day exponential moving average as the next major objective. On the chart, this longer-term indicator remains above the current price. It closely aligns with the broader descending trendline, making it a notable resistance area that traders will likely monitor in the coming sessions.

Gallegos suggested that reclaiming this level would further strengthen the bullish technical outlook.

CLARITY Act Could Add to Market Momentum

In addition to the chart setup, Gallegos pointed to the CLARITY Act as a potential market catalyst. He stated that the timing of XRP’s technical structure could align with the legislation if the bill clears the Senate before lawmakers begin their August recess.

While he did not claim that the legislation alone would determine XRP’s direction, he suggested that positive regulatory progress could coincide with the developing breakout pattern and strengthen market sentiment.

Gallegos concluded that XRP has entered another pivotal phase. With the inverse head and shoulders pattern continuing to develop, the asset holding above its 50-day EMA, and the 200-day EMA serving as the next technical target, he believes the market is approaching a decisive moment that XRP traders should monitor closely.

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